Financial statements are prepared from a(n):
A)adjusted trial balance.
B)unadjusted trial balance.
C)general journal.
D)general ledger.

Question

Quizplus · Accepted Answer

Financial statements are prepared from an adjusted trial balance because it contains all the necessary adjustments made at the end of the accounting period. Unadjusted trial balances do not reflect any adjustments, while general journals and ledgers are used to record transactions and do not provide a summary of account balances needed for financial statements.

Financial Statements Are Prepared from A(n)