Asked by Panthira Aungsuworapruek on Jul 19, 2024
Verified
Which of the following best describes the difference between an unadjusted trial balance and an adjusted trial balance?
A) An unadjusted trial balance is prepared at the start of the accounting period and is not provided to external decision makers,while an adjusted trial balance is prepared at the end of the period and is provided to external decision makers.
B) An unadjusted trial balance is prepared by companies that make adjusting entries,while an adjusted trial balance is prepared by companies that do not make adjusting entries.
C) An unadjusted trial balance is prepared before the adjusting entries have been made,while an adjusted trial balance is prepared after the adjusting entries have been made.
D) An unadjusted trial balance is prepared after the post-closing trial balance.
Unadjusted Trial Balance
A report listing all the accounts and their balances before any adjusting entries are made, used to check the equality of debits and credits.
Adjusting Entries
Journal entries made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.
- Acquire insight into the objectives and preparation methods of unadjusted and adjusted trial balances.
Verified Answer
OA
Osama AhmedJul 24, 2024
Final Answer :
C
Explanation :
An unadjusted trial balance is prepared before the necessary adjusting entries have been made, while an adjusted trial balance is prepared after the adjusting entries have been made. The purpose of adjusting entries is to record transactions that have occurred but have not yet been recorded, such as accrued expenses or unearned revenues. Therefore, the adjusted trial balance reflects the updated account balances after these adjustments have been made.
Learning Objectives
- Acquire insight into the objectives and preparation methods of unadjusted and adjusted trial balances.