Which of the following statements is correct? Financial statements are prepared before adjustments to ensure that all accounts have been brought to their correct balance. Financial statements are prepared before adjustments to ensure that debits equal credits before beginning the adjustment process. Financial statements are prepared before adjustments to ensure that debits equal credits before concluding the adjustment process. Financial statements are prepared after adjustments to ensure that all accounts have been brought to their correct balance.

Financial statements are prepared after adjustments to ensure that all accounts have been brought to their correct balance.

Explanation: Financial statements are records or documents prepared to give details of the movement of funds in and out of an organisation. Financial statements are vital to the auditors and the business it helps business organisations to determine the true status of affairs in the company,it also helps to ensure that frauds are detected and prevented.

Before preparing Financial statements it is essential that all adjustments are made to ensure that all accounts have been brought to their correct balance.

answer; property tax payment made in july and december;

answer; ///liability;