Financial statements can be prepared directly from the information in the adjusted trial balance.

Question

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The adjusted trial balance is a report that shows the balances of all accounts after adjusting entries have been made. This report is used to prepare financial statements such as the income statement, balance sheet, and statement of cash flows. Therefore, financial statements can be prepared directly from the information in the adjusted trial balance.

Financial Statements Can Be Prepared Directly from the Information in the Adjusted