QuestionMay 26, 2025

Illustrate your understanding of how to use the adjusted trial balance to prepare an income statement by completing the following sentence. In order to prepare an income statement using the account balances on an adjusted trial balance, all of the square (revenues/fiabilities) and their credit balances are transferred to the income statement as well as all of the square (expenses/assets) and their square (debit/credit) balances

Illustrate your understanding of how to use the adjusted trial balance to prepare an income statement by completing the following sentence. In order to prepare an income statement using the account balances on an adjusted trial balance, all of the square (revenues/fiabilities) and their credit balances are transferred to the income statement as well as all of the square (expenses/assets) and their square (debit/credit) balances
Illustrate your understanding of how to use the adjusted trial balance to prepare an income statement by completing the following sentence. In order to
prepare an income statement using the account balances on an adjusted trial balance, all of the square  (revenues/fiabilities) and their credit
balances are transferred to the income statement as well as all of the square  (expenses/assets) and their square  (debit/credit)
balances

Solution
4.1(199 votes)

Answer

In order to prepare an income statement using the account balances on an adjusted trial balance, all of the revenues and their credit balances are transferred to the income statement as well as all of the expenses and their debit balances. Explanation 1. Identify Revenue Accounts Revenues and their credit balances are transferred to the income statement. 2. Identify Expense Accounts Expenses and their debit balances are transferred to the income statement.

Explanation

1. Identify Revenue Accounts<br /> Revenues and their credit balances are transferred to the income statement.<br />2. Identify Expense Accounts<br /> Expenses and their debit balances are transferred to the income statement.
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