Can financial statements be prepared directly from the adjusted trial balance?

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Can financial statements be prepared directly from the adjusted trial balance?

 

No, the adjusted trial balance merely proves the equality of the total debit and total credit balances in the ledger after adjustments are posted. It has no other purpose.

 

Yes, adjusting entries have been recorded in the general journal and posted to the ledger accounts.

 

They can because that is the only reason that an adjusted trial balance is prepared.

 

They cannot. The general ledger must be used.
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