Financial statements are prepared only after the trial balance has shown that debits equal credits.

Name: Financial statements are prepared only after the trial balance has shown that debits equal credits.
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Question

Quizplus · Accepted Answer

Financial statements must be prepared after ensuring that all transactions have been properly recorded in the trial balance and that the total debits equal the total credits. This is the basic principle of double-entry bookkeeping. Only then can reliable financial statements be prepared.

Financial Statements Are Prepared Only After the Trial Balance Has