Q1RQ
Question
What document are financial statements prepared from?
Step-by-Step Solution
Verified Answer
Adjusted trial balance are used to prepare financial statements.
1Step-by-Step-Solution Step 1: Explanation on Financial Statements
Financial statements includes income statement, Statement of retained earnings, Balance sheet.
2Step 2: Explanation on Adjusted Trial Balance
Adjusted trial balance is prepared after recording and posting the adjusting entries in the books of accounts. Accounts mentioned in adjusted trial balance are used to prepare financial statements of the entity.
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