The adjusted trial balance may be used in place of the income statement.

Question

Quizplus · Accepted Answer

The adjusted trial balance is a list of accounts and their balances after adjusting entries have been recorded, but it does not provide the same level of detail as an income statement. An income statement reports revenues, expenses, gains, and losses for a specific period of time, and is used to determine the net income or loss of a business. Therefore, the adjusted trial balance cannot be used in place of the income statement.

The Adjusted Trial Balance May Be Used in Place of the Income