An Adjusted Trial Balance

question 33

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 IFRS.
• D) cannot be used to prepare financial statements.

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Definitions:

Sales Budget

A detailed forecast of future sales, typically the first step in the budgeting process, driving the company's production, workforce, and financial planning.

Cost of Goods Sold

The direct costs attributable to the production of goods sold in a company, including materials and labor.

Selling and Administrative Expenses

The total of all overhead and operational expenses directly tied to the selling and general management of an organization.

Budgeted Purchases

This refers to the estimated amount of goods or services that a business plans to buy over a specific period, as set out in its budget.