The statement of earnings is prepared by using the revenue and expense account balances from the
A) trial balance.
B) ledgers.
C) adjusted trial balance.
D) journal.

Question

Quizplus · Accepted Answer

The statement of earnings, also known as the income statement, is prepared using the revenue and expense account balances from the adjusted trial balance. The adjusted trial balance reflects all adjustments for accruals, deferrals, and other adjustments made at the end of the accounting period, ensuring that the income statement accurately reflects the financial performance of the entity for that period.

The Statement of Earnings Is Prepared by Using the Revenue