Asked by samantha rodriguez on Jun 24, 2024
Verified
An adjusted trial balance must be prepared before the adjusting entries can be recorded.
Adjusted Trial Balance
A financial statement listing all accounts and their final balances after adjusting entries are made, ensuring the total debits equal total credits.
Adjusting Entries
Bookkeeping entries recorded at the close of a fiscal period to assign earnings and outlays to the timeframe in which they happened.
- Understand the necessity and preparation of adjusting and closing entries before the production of financial statements.
Verified Answer
JK
Jacqueline Khaw Sze ErnJun 29, 2024
Final Answer :
False
Explanation :
Adjusting entries are made before preparing the adjusted trial balance, as these entries are necessary to update account balances for accruals, deferrals, and other adjustments.
Learning Objectives
- Understand the necessity and preparation of adjusting and closing entries before the production of financial statements.
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