Which of the following statements regarding financial statements and the trial balance is correct?
A)Financial statements are prepared only after the adjusted trial balance has shown that debits equal credits.
B)A post-closing trial balance should be prepared before temporary accounts are closed.
C)An adjusted trial balance reflects the amount of retained earnings to be shown on the Balance Sheet.
D)A post-closing trial balance lists all the accounts that are shown on the Income Statement.

Question

Quizplus · Accepted Answer

Financial statements should be prepared only after the adjusted trial balance has been prepared and the debits and credits have been balanced. The adjusted trial balance includes all adjustments made to the accounts during the accounting period, and the resulting balances should be used to prepare the financial statements.

Which of the Following Statements Regarding Financial Statements and the Trial