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.

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