The income statement is prepared from:
A) either the post-closing trial balance or the unadjusted trial balance columns of the work sheet.
B) either the unadjusted trial balance or the balance sheet columns of the work sheet.
C) either the adjusted trial balance or the income statement columns of the work sheet.
D) both the adjusted trial balance and the balance sheet columns of the work sheet.

Question

Quizplus · Accepted Answer

The income statement is prepared from the adjusted trial balance, which takes into account all adjusting entries made during the accounting period. The income statement columns of the work sheet show the accounts that are used to create the income statement. Therefore, either the adjusted trial balance or the income statement columns of the work sheet can be used to prepare the income statement.

The Income Statement Is Prepared From