When a Worksheet Is Used

Multiple Choice

When a worksheet is used:

A) Adjusting entries are not prepared, since adjustments are shown on the worksheet.
B) Revenue and expense accounts do not have to be closed to the Income Summary account, because the income statement is prepared from the worksheet and profit is already computed.
C) Financial statements may be prepared before recording adjusting and closing entries in the accounting records.
D) The Income Statement column and Balance Sheet column of the worksheet eliminate the need to prepare formal financial statements for a business.