Question

After a worksheet has been completed, the statement columns contain all data that are required for the preparation of financial statements. True False

Answer 1

Answer:

True

Explanation:

Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. Thus, a financial statement includes balance sheet, statement of retained earnings and income statement.

A worksheet comprises of a multiple-column form that is used by accountants or auditors for an adjustment process and the preparation of a financial statement. A worksheet contains the following columns; trial balance, adjusted trial balance, adjustments, balance sheet and income statement.

After a worksheet or spreadsheet document has been completed, a financial expert such as an accountant inputs into the statement columns all the data that are required for the preparation of financial statements.