Question

Financial statements can be prepared directly from thea. adjusted trial balanceb. reversing trial balancec. trial balanced. post-closing trial balancee. All of these are correct

Answer 1

Answer:  Post closing trial balance

Explanation: Post closing trial balance can be used to prepare financial statements directly.

After the closing entries have been passed and journalized on all accounts, their balances are recorded on the post closing trial balance. It is the last step in accounting cycle.  

It contains balances of all accounts thus it can be concluded that one can prepare financial statements directly from post closing statements directly.