Which of the following is true regarding a worksheet prepared at year-end?
A)The number of account titles applicable to the Adjusted Trial Balance columns is usually greater than the number of account titles applicable to the Trial Balance columns.
B)The worksheet can be issued instead of financial statements.
C)The worksheet eliminates the need to make adjusting and closing entries.
D)An equal number of account titles are applicable to the Income Statement columns and the Balance Sheet columns.

Question

Quizplus · Accepted Answer

The Adjusted Trial Balance columns include all accounts, including those used for adjusting entries, while the Trial Balance columns only include accounts with their current balance. Therefore, the number of account titles applicable to the Adjusted Trial Balance columns is usually greater than the number of account titles applicable to the Trial Balance columns. This is important to ensure that all necessary accounts are properly adjusted before closing. B is not true as the worksheet is a tool used to prepare financial statements. C is not true as the worksheet identifies the necessary adjusting and closing entries, but they still need to be made in the accounting system. D is not true as the Income Statement and Balance Sheet columns will have different account titles.

Which of the Following Is True Regarding a Worksheet Prepared