Financial statements should be prepared
A) using the retained earnings account.
B) using permanent accounts only.
C) from a post-closing trial balance.
D) from an adjusted trial balance.

Question

Quizplus · Accepted Answer

Financial statements are prepared from an adjusted trial balance because it reflects all adjustments made for accrued and deferred items, ensuring that all revenues and expenses are recorded in the correct accounting period.

Financial Statements Should Be Prepared