Can Financial Statements Be Prepared Directly from the Adjusted Trial

question 40

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:

Incentive

A thing that motivates or encourages someone to do something, often a reward that induces positive or desired behavior.

External Stimulus

An event or factor outside the body that influences an individual's physiological or psychological response.

Drive-Reduction

A psychological theory that posits the reduction of physiological needs drives behavior, aiming to reduce the state of tension or arousal caused by unmet needs.

Homeostasis

The process by which a living organism or cell maintains stable internal conditions despite changes in its external environment.