Can financial statements be prepared directly from

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149.Can financial statements be prepared directly from the adjusted trial balance?a.They cannot. The general ledger must be used.b.Yes, adjusting entries have been recorded in the general journal and posted to theledger accounts.c.No, the adjusted trial balance merely proves the equality of the total debit and totalcredit balances in the ledger after adjustments are posted. It has no other purpose.d.They can because that is the only reason that an adjusted trial balance is prepared.Ans: b, LO 4, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None AICPA FC: Measurement
150.The adjusted trial balance is prepared
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Ans: b, LO 4, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None AICPA FC: Measurement152.Which of the statements below is nottrue?
153.Andrew is a barber who does his own accounting for his shop. When he buys supplies heroutinely debits Supplies Expense. Andrew purchased $1,700 of supplies in January andhis inventory at the end of January shows $400 of supplies remaining. What adjustingentry should Andrew make on January 31?
Ans: c, LO 5, BT: AP, Difficulty: Medium, TOT: 4 min., AACSB: Analytic, AICPA BB: None, AICPA FN: Measuring, AICPA PC: Problem solvinga154.Alternative adjusting entries do notapply toa.accrued revenues and accrued expenses.b.prepaid expenses.c.unearned revenues.d.prepaid expenses and unearned revenues.Ans: a, LO 5, BT: C, Difficulty: Medium, TOT: 2 min., AACSB: None AICPA FC: Measurementa

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