BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
calculate an unadjusted trial balance
|
|
|
prepare the adjusted trial balance
|
|
|
post each transaction to the appropriate account
|
|
|
journalize the transactions
|
Detailed explanation-1: -Unadjusted Trial Balance: After the company posts journal entries to individual general ledger accounts, an unadjusted trial balance is prepared.
Detailed explanation-2: -When all the journal entries have been posted in the general journal, the next thing an accountant/bookkeeper must perform is the preparation of an unadjusted trial balance. It will make sure that the sum of all debits and all credits is equal.
Detailed explanation-3: -After you make your adjusted entries, you’ll post them to your general ledger accounts, then prepare the adjusted trial balance. This process is just like preparing the trial balance except the adjusted entries are used. Make sure to correct any errors you’ve found.
Detailed explanation-4: -the word “Adjusting” should be written in the Item column of the general ledger. Under sum-of-the-years’ digits depreciation, an asset with a useful life of 6 years would have a first-year depreciation rate of 5/21.
Detailed explanation-5: -After posting all financial transactions to the accounting journals and summarizing them in the general ledger, a trial balance is prepared to verify that the debits equal the credits on the chart of accounts. The trial balance is the next step in the accounting cycle.