Can Financial Statements Be Prepared Directly from the Adjusted Trial

question 43

Multiple Choice

Can financial statements be prepared directly from the adjusted trial balance?

• A) They cannot. The general ledger must be used.
• B) Yes adjusting entries have been recorded in the general journal and posted to the ledger accounts.
• C) No the adjusted trial balance merely proves the equality of the total debit and total credit balances in the ledger after adjustments are posted. It has no other purpose.
• D) They can because that is the only reason that an adjusted trial balance is prepared.

---

Definitions:

Spoon

A utensil consisting of a small, shallow bowl on a handle, used for preparing, serving, or eating food.

Statue

A three-dimensional sculpture.

Kente Cloth

A type of silk and cotton fabric made of interwoven cloth strips and is native to the Akan ethnic group of South Ghana, known for its vibrant colors and designs.

Material

A substance or substances from which a thing is or can be made.