Question

which of the following statements is true regarding the flow of accounting information? a. the account...

which of the following statements is true regarding the flow of accounting information?

a. the account balances in the adjusted trial balance are used to prepare financial statements for the current accounting period

b. transactions are first recorded in the ledger accounts and then transferred to the accounting journals

c. the net income (revenue less expenses) as reported on the income statement is also reported on the balance sheet

d. the dividends reported on the statement of retained earnings are also reported on the income statement

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Answer #2

Answer: a) the account balances in the adjusted trial balance are used to prepare financial statements for the current accounting period

explanation

the adjusted trial balance is used to prepare the financial statements for the current period

option b) is not correct because the transactions are first recorded in the journal and then posted to the ledger accounts

option c) is incorrect because net income is not recorded on the balance sheet .it should be included in the retained earning statement

option d) is incorrect because dividends are not recorded on the income statement .

answered by: anonymous
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