Asked by Siti nur Jannah on May 31, 2024
Verified
In preparing statements from the adjusted trial balance,the balance sheet must be prepared first.
Adjusted Trial Balance
A financial report that lists all accounts and their balances after adjustments have been made, ensuring the total debits equal the total credits.
Statements
Financial documents that provide an overview of a business or person's financial condition, including balance sheets, income statements, and cash flow statements.
- Understand the purpose and process of preparing financial statements from the adjusted trial balance.
Verified Answer
LL
Lalith LankaJun 05, 2024
Final Answer :
False
Explanation :
The income statement is typically prepared first from the adjusted trial balance because it provides the net income or loss, which is then used to prepare the statement of retained earnings, and this in turn is needed to complete the balance sheet.
Learning Objectives
- Understand the purpose and process of preparing financial statements from the adjusted trial balance.