Final answer:
The statement that revenue and expense accounts from the adjusted trial balance flow into the income statement is true. The income statement is a financial document detailing a company's revenues and expenses, revealing the net profit or loss.
Step-by-step explanation:
From the adjusted trial balance, the revenue and expense accounts will flow into the income statement. This statement is true. The adjusted trial balance is a listing of all company accounts that will appear on the financial statements after year-end adjustments are made. The purpose of the adjusted trial balance is to ensure that the total amount of debit balances in the general ledger equals the total amount of credit balances. Revenues and expenses are then used to prepare the income statement, which provides an overview of the company's financial performance for a specific period.
Understanding the flow of accounts from the trial balance to financial statements is crucial for accurate financial reporting and analysis. The income statement, specifically, details the company's revenue and expenses, ultimately revealing the net profit or loss over the fiscal period.