Asked by Justin Robbins on Jul 18, 2024
Verified
What is the major difference between the unadjusted trial balance and the adjusted trial balance?
A) The adjusted trial balance will show the net income (loss) as an additional account.
B) Unlike the adjusted trial balance, the unadjusted trial balance will continue with the end-of-period processing even if it is not in balance.
C) The adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts.
D) The adjusted trial balance will be used to record the adjustments for the period.
Adjusted Trial Balance
A statement that lists all accounts and their balances after adjusting entries are made, used to prepare financial statements.
Unadjusted Trial Balance
A preliminary report listing all the accounts and their balances from the general ledger before any adjusting entries are made to prepare financial statements.
- Understand the differences between the unadjusted trial balance and the adjusted trial balance.
Verified Answer
QQ
Qusai QwasmehJul 19, 2024
Final Answer :
C
Explanation :
The major difference between the unadjusted trial balance and the adjusted trial balance is that the adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts. The adjustments are made to ensure that the financial statements are accurate and complete, and the adjusted trial balance is used to verify that this has been done correctly. The unadjusted trial balance is simply a list of all the accounts and their balances before any adjustments have been made.
Learning Objectives
- Understand the differences between the unadjusted trial balance and the adjusted trial balance.