Asked by Riley Runnells on Apr 24, 2024
Verified
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
Income Statement Columns
The structured classification of financial data in the income statement, typically involving revenues, expenses, and net income or loss.
Adjusted Trial Balance
The Adjusted Trial Balance is a list of all accounts and their balances after adjusting entries are made, serving as a checkpoint before financial statements are prepared.
- Describe the process for preparing financial statements from the end-of-period spreadsheet.
Verified Answer
LC
Lorena Cardoza7 days ago
Final Answer :
C
Explanation :
The income statement can be prepared either from the adjusted trial balance or the Income Statement columns of the end-of-period spreadsheet. Both provide the necessary information to calculate revenues, expenses, and net income for the period.
Learning Objectives
- Describe the process for preparing financial statements from the end-of-period spreadsheet.
Related questions
The End-Of-Period Spreadsheet ...
Accumulated Depreciation and Service Fees Earned Would Be Sorted to ...
When Using a Spreadsheet to Prepare the Statement of Cash ...
Closing Entries Are Entered Directly on the End-Of-Period Spreadsheet
The End-Of-Period Spreadsheet Is a Tool That Accountants Can Use ...