Financial statements are prepared from a(n):
A) general journal.
B) general ledger.
C) unadjusted trial balance.
D) adjusted trial balance.

Question

Quizplus · Accepted Answer

Financial statements are prepared from an adjusted trial balance, which includes all adjustments and corrections made to the accounts during the accounting period. This ensures that the financial statements accurately reflect the company's financial position and results of operations. The general journal and general ledger are used to record transactions and maintain account balances, while the unadjusted trial balance is simply a list of account balances before any adjustments have been made. Therefore, the adjusted trial balance is the best source for preparing financial statements.

Financial Statements Are Prepared from A(n)