Which of the Following Statements Related to the Adjusted Trial

question 120

Multiple Choice

Which of the following statements related to the adjusted trial balance is incorrect?

• A) It shows the balances of all accounts at the end of the accounting period.
• B) It is prepared before adjusting entries have been made.
• C) It proves the equality of the total debit balances and the total credit balances in the ledger.
• D) Financial statements can be prepared directly from the adjusted trial balance.

---

Definitions:

External

Pertaining to factors, forces, or environments outside of an individual or organization that influence outcomes or actions.

Lesbian, Gay, Bisexual, and Transgender

An inclusive term for communities and individuals who identify as lesbian, gay, bisexual, transgender, encompassing diverse sexual orientations and gender identities.

Illegal

Activities or actions that are forbidden by law and subject to criminal penalties or fines.

United States

A country located primarily between Canada and Mexico in North America, known for its significant influence on global politics, economy, and culture.