An Adjusted Trial Balance

question 9

Multiple Choice

An adjusted trial balance

• A)is prepared after the financial statements are completed.
• B)proves the equality of the total debit balances and total credit balances of ledger accounts after all adjustments have been made.
• C)is a required financial statement under generally accepted accounting principles.
• D)cannot be used to prepare financial statements.

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Definitions:

Financial Liabilities

Obligations that require a company to pay money to another entity, including loans, bonds payable, and accounts payable.

Borrowing Cost

A financial expense encompassing interest and other costs incurred by an entity in connection with the borrowing of funds.

Entity's Profits

The financial gain that remains after subtracting all expenses, taxes, and costs from a company's revenue.