Which of the Following Statements Is False

question 66

Multiple Choice

Which of the following statements is false?

• A) Companies can prepare the income statement and the statement of financial position directly from the adjusted trial balance.
• B) Companies can prepare the statement of cash flows directly from the adjusted trial balance.
• C) The adjusted trial balance proves the equality of total debits and total credits after all adjustments.
• D) Each adjusting entry affects one statement of financial position account and one income statement account.