If a worksheet is used financial statements can be prepared before adjusting entries are journalized.

Question

Quizplus · Accepted Answer

The purpose of a worksheet is to facilitate the preparation of financial statements by organizing and summarizing the information from the adjusted trial balance. The worksheet includes columns for adjusting entries, which are used to update account balances before the financial statements are prepared. Therefore, financial statements can be prepared before adjusting entries are journalized using a worksheet.

If a Worksheet Is Used Financial Statements Can Be Prepared