MANAGEMENT

Detailed explanation-1: -Answer and Explanation: The correct answer is false. An adjusted trial balance is prepared after all the transactions have been posted in the general ledger. In practice, the following is the list of accounting cycles.

Detailed explanation-2: -At the end of the accounting period, a trial balance is calculated as the fourth step in the accounting cycle. A trial balance tells the company its unadjusted balances in each account.

Detailed explanation-3: -Reflecting adjusting entries in the unadjusted trial balance will now result in the creation of an adjusted trial balance. It is now the basis for creating annual financial statements. Thus, the above statement is true.

Detailed explanation-4: -Once all adjustments have been made, the adjusted trial balance is essentially a summary-balance listing of all the accounts in the general ledger-it does not show any detail transactions that comprise the ending balances in any accounts.

Detailed explanation-5: -The statement is FALSE. The unadjusted and adjusted trial balances are normally prepared at the end of each accounting period as part of the adjusting entry process, but most companies prepare trial balances on at least a monthly basis to ensure that their postings and mathematical calculations are accurate.