Final answer:
The statement is true as financial statements are prepared to reflect the financial position before closing entries transfer temporary account balances.
Step-by-step explanation:
The statement 'Financial statements are usually prepared before the closing entries are made' is True. Financial statements are prepared after the trial balance is adjusted but before the closing entries are processed. Closing entries are made at the end of an accounting period to transfer temporary account balances to permanent accounts, whereas financial statements provide a snapshot of the company's financial health at a point in time, which is why they have to be prepared before the accounts are closed.