Asked by Svetlana Brenner on May 17, 2024
Verified
The income statement is prepared from the adjusted trial balance or the Income Statement columns of the end-of-period spreadsheet.
Income Statement
A financial statement that reports a company's revenues, expenses, and profits over a specific period, showing how net income is derived from business operations.
Adjusted Trial Balance
A list of all accounts and their balances after adjustments, used to prepare financial statements.
- Acquire knowledge on the preparation and critical role of financial statements throughout the accounting cycle.
Verified Answer
LM
Lucas MatlalaMay 20, 2024
Final Answer :
True
Explanation :
The income statement can be prepared either by using the adjusted trial balance or by using the Income Statement columns of the end-of-period spreadsheet.
Learning Objectives
- Acquire knowledge on the preparation and critical role of financial statements throughout the accounting cycle.
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