financial statements can be prepared directly from the Adjusted Trial Balance, which makes completion of the last four columns of the work sheet optional.

Question

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The Adjusted Trial Balance contains all the account balances after adjustments, which are necessary for preparing the financial statements directly, making the completion of the last four columns of the work sheet (which typically include adjustments, adjusted balances, and financial statement columns) optional for the actual preparation of financial statements.

Financial Statements Can Be Prepared Directly from the Adjusted Trial