Can Financial Statements Be Prepared Directly from the Adjusted Trial

question 225

Multiple Choice

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

• A)They cannot.The general ledger must be used.
• B)Yes, the adjusted trial balance shows the adjusted balances from the general ledger.
• 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.

Understand the concept and application of hypothesis testing with P-values.

Estimate population proportions with plus four confidence interval method.

Apply statistical methods to real-world scenarios related to quality control, sports, and psychic abilities testing.

Evaluate the significance level of hypothesis tests and understand the relationship between sample size, P-value, and margin of error.

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Definitions:

Retained Earnings Account

An equity account that represents the accumulated portion of net income that a company has decided to keep and reinvest in the business rather than distribute to shareholders as dividends.

Permanent Account Balances

Permanent account balances are those balances in accounts that are carried over into the next accounting period, including assets, liabilities, and equity accounts.

Post-closing Trial Balance

A listing of all permanent accounts and their balances after closing entries have been made, serving as a check to ensure that debits equal credits.