BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
An adjusted trial balance proves the equality of the total debit and credit balances in the ledger after all adjustments are made.
|
|
|
The adjusted trial balance lists the account balances segregated by assets and liabilities.
|
|
|
The adjusted trial balance is prepared before the adjusting entries have been journalized and posted.
|
|
|
The adjusted trial balance doesn’t prove the basis for preparation of financial statements.
|
Detailed explanation-1: -Well, the purpose of preparing an adjusted trial balance is to ensure that the financial statements for the period are accurate and up-to-date. It corrects any errors to make the statements compatible with the requirements of an applicable accounting framework.
Detailed explanation-2: -Which of the following is correct concerning the adjusted trial balance? An adjusted trial balance proves the equality of the total debit balances and the total credit balances in the ledger after all adjustments are made.
Detailed explanation-3: -Trial balance is prepared with the help of ledger account. All the balances from each of ledger account is taken in a list in the debit and credit column. Both the sides of trial balance must be equal as accounting is based on the double entry system of accounting. Was this answer helpful?
Detailed explanation-4: -If a transaction is wrongly recorded in journal and posted to the ledger account, then the trial balance will not tally. But, if the journal is wrong and is not posted at all, this means no debit or credit effect on the accounts. Hence there will be no effect on the trial balance.