The Financial Statements Are Prepared from the ________

question 39

Multiple Choice

The financial statements are prepared from the ________.

• A)adjusted trial balance
• B)chart of accounts
• C)statement of retained earnings
• D)unadjusted trial balance

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Definitions:

Debits

Accounting entries that increase assets or expenses and decrease liabilities, equity, or revenue, recorded on the left side of accounting ledgers.

Credits

Accounting entries that increase liabilities or decrease assets, or record income in double-entry bookkeeping.

Journal Entry

A Journal Entry is a record in bookkeeping that logs the debit and credit parts of a financial transaction in accounting.