Asked by
Mireille Hnoud
on Nov 14, 2024Verified
An adjusted trial balance
A) is prepared after the financial statements are completed.
B) proves the equality of the total debit balances and total credit balances of ledger accounts after all adjustments have been made.
C) is a required financial statement under generally accepted accounting principles.
D) cannot be used to prepare financial statements.
Adjusted Trial Balance
A list of all accounts and their balances after adjustments, used to compile financial statements and check for errors in journal entries.
Ledger Accounts
Individual financial accounts recorded in a ledger, providing a detailed record of all transactions affecting that account.
Financial Statements
Formal records of the financial activities and position of a business, individual, or other entity, including the balance sheet, income statement, and cash flow statement.
- Understand the purpose of an adjusted trial balance and its role in the preparation of financial statements.
Verified Answer
GN
Learning Objectives
- Understand the purpose of an adjusted trial balance and its role in the preparation of financial statements.