The income statement is prepared from
A) the adjusted trial balance
B) the Income Statement columns of the end-of-period spreadsheet
C) either the adjusted trial balance or the Income Statement columns of the end-of-period spreadsheet
D) both the adjusted trial balance and the Income Statement columns of the end-of-period spreadsheet

Question

Quizplus · Accepted Answer

The income statement can be prepared directly from the Income Statement columns of the end-of-period spreadsheet, which contains all the revenue and expense accounts with their respective balances. Alternatively, it can also be prepared from the adjusted trial balance, which includes all the accounts and their updated balances after adjusting entries have been made. Both options can result in an accurate income statement.

The Income Statement Is Prepared from