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:

Market Conflict

Disputes or competition among businesses in the same market, often involving pricing, product offerings, and market share strategies.

Utilitarian Ethical Beliefs

are ethical principles that evaluate the morality of actions based on their outcomes or consequences, aiming for the greatest good for the greatest number of people.

Final Authority

The ultimate power or jurisdiction to make decisions, often within an organization or governmental body.

Labor Federation

An organization or coalition of trade unions or labor unions that represent workers' interests at a regional, national, or international level.