BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -To prepare the financial statements, a company will look at the adjusted trial balance for account information. From this information, the company will begin constructing each of the statements, beginning with the income statement. Income statements will include all revenue and expense accounts.

Detailed explanation-2: -The reason for preparing the adjusted trial balance is to ensure the adjusting entries were done correctly. This is the last step before preparing financial statements that are used by you, your creditors and your shareholders to monitor the performance of your business.

Detailed explanation-3: -Explanation: In the accounting cycle, the adjusting entries are posted to the general ledger, followed by an adjusted trial balance. After the adjusted trial balance is prepared to ensure the balancing of debits and credits, then the financial statements are prepared.

Detailed explanation-4: -Prepared at the end of an accounting period-the end of the financial year-the adjusted trial balance is reported on a business’s financial statements, which provide useful information about profits and losses, cash flow and expenses.

Detailed explanation-5: -An adjusted trial balance is an internal document that financial professionals use to record each transaction with any possible adjusted entries within general ledger accounts. With these adjusted entries, the accountant corrects the initial trial balance to ensure financial statements conform to accounting standards.