Financial statements cannot be prepared until the accounts have been adjusted.

Question

Quizplus · Accepted Answer

Adjusting the accounts is an important step in preparing accurate financial statements. It ensures that all revenues and expenses are recognized in the proper accounting period and that assets and liabilities are correctly valued. Without adjusting the accounts, the financial statements would not provide an accurate representation of the company's financial performance and position.

Financial Statements Cannot Be Prepared Until the Accounts Have Been