Asked by Helmut Andres Florencia Roldan on May 01, 2024
Verified
The accounting cycle requires three trial balances be done. In what order should they be prepared?
A) post-closing, unadjusted, adjusted
B) unadjusted, post-closing, adjusted
C) unadjusted, adjusted, post-closing
D) post-closing, adjusted, unadjusted
Post-Closing
Post-closing refers to the period after the closing entries are made in the accounting cycle, aimed at preparing the accounts for the next period by resetting revenue and expense accounts to zero.
Unadjusted
Pertaining to figures or balances not yet modified for errors, changes, or specific adjustments required for accurate reporting.
Adjusted
Modified or changed to reflect more accurate or specific conditions or values.
- Determine the sequence of actions in the end-of-period procedures.
Verified Answer
ZK
Zybrea KnightMay 07, 2024
Final Answer :
C
Explanation :
The unadjusted trial balance is prepared first, followed by adjustments made in the adjusted trial balance, and finally the post-closing trial balance is prepared after all closing entries have been made. Therefore, the correct order is unadjusted, adjusted, and post-closing trial balances.
Learning Objectives
- Determine the sequence of actions in the end-of-period procedures.