In Lieu of Using the Trial Balance Worksheet to Prepare

question 124

Multiple Choice

In lieu of using the Trial Balance Worksheet to prepare the financial statements,an accountant can use the:

• A)journal.
• B)ledger.
• C)prior period financial statements.
• D)prior period audit report.

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Definitions:

Income Statement

A financial statement showing a company's revenues, expenses, and net income or loss over a specific period.

Other Income

Income derived from sources other than a company's primary business operations, such as interest or rental income.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain period.

Record Payments

The process of documenting all money transfers made to settle debts or for purchases in the accounting records of a company.