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:

Collagen

A primary structural protein found in the skin and connective tissues, providing strength and elasticity.

Reticular Fibers

Fine, branching fibers of connective tissue that form networks in various organs and support the tissue structure.

Chondroblast

A cell that produces cartilage matrix, leading to the formation of new cartilage.

Cartilage

A flexible, rubbery connective tissue found in various parts of the body, such as the joints, ear, and nose, providing support and structure.