Asked by Fallon Elise on Jun 26, 2024

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Which of the following statements is incorrect?

A) Working papers are useful aids in the accounting process.
B) On the work sheet,the effects of the accounting adjustments are shown on the account balances.
C) After the work sheet is completed,it can be used to help prepare the financial statements.
D) On the work sheet,the adjusted amounts are sorted into columns according to whether the accounts are used in preparing the unadjusted trial balance or the adjusted trial balance.
E) A worksheet is not a substitute for financial statements.

Work Sheet

A document or tool used for planning, calculations, and maintaining records, especially in accounting to draft financial statements.

Financial Statements

Reports that summarize the financial performance and position of a company.

Working Papers

Documents prepared or obtained by auditors as part of their audit process, containing the evidence and conclusions on which their opinion is based.

  • Attain insight into the procedures of the accounting cycle, from documenting transactions in journals to finalizing the post-closing trial balance.
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SK
Segana KinyeJul 01, 2024
Final Answer :
D
Explanation :
The incorrect statement is D because on the work sheet, the adjusted amounts are sorted into columns according to whether the accounts are used in preparing the income statement or the balance sheet, not the unadjusted trial balance or the adjusted trial balance.