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

Question

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Financial statements require accurate and balanced data, which is confirmed by preparing a trial balance. The trial balance ensures that the total of debits in the system equal the total of credits. Once the debits equal the credits, the data can be transferred to the financial statements. Therefore, financial statements should be prepared after the trial balance.

Financial Statements Are Prepared Only After the Trial Balance Has