The financial statements are prepared from the ________.
A)adjusted trial balance
B)chart of accounts
C)statement of retained earnings
D)unadjusted trial balance

Question

Quizplus · Accepted Answer

The financial statements are typically prepared from the adjusted trial balance, as this contains all necessary adjustments made to the accounts during the accounting period. The chart of accounts is simply a list of all accounts used by a company, and does not contain any actual financial information. The statement of retained earnings only shows changes in a company's retained earnings account, and is not a complete financial statement on its own. The unadjusted trial balance does not include any adjustments made during the accounting period, and thus does not provide an accurate representation of a company's financial position.

The Financial Statements Are Prepared from the ________