Financial Statements Are Prepared Directly from the

question 123

Multiple Choice

Financial statements are prepared directly from the

• A)general journal.
• B)ledger.
• C)trial balance.
• D)adjusted trial balance.

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Definitions:

General-purpose Financial Statements

Financial reports prepared for external users, such as investors and creditors, providing a broad overview of a company's financial position and performance.

External Users

Individuals or entities outside an organization who rely on its financial information for decision-making purposes, such as investors, creditors, and regulatory agencies.

Shareholders

Individuals or entities that own one or more shares of stock in a public or private corporation, giving them rights to dividends and a voice in corporate governance.

Corporation

A legal entity recognized by law, distinct from its owners, with rights to own property, sue or be sued.