The Information for Preparing a Trial Balance on a Worksheet

question 170

Multiple Choice

The information for preparing a trial balance on a worksheet is obtained from

• A)financial statements.
• B)general ledger accounts.
• C)general journal entries.
• D)business documents.

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Definitions:

Adjusting Entries

At the close of a financial period, journal entries are created to distribute earnings and costs to the period in which they genuinely took place.

Adjusted Trial Balance

is a listing of all company accounts that will appear on the financial statements after making end-of-period adjustments.

Reversing Entry

An accounting entry made at the beginning of an accounting period to reverse or cancel out a previous adjusting entry.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate revenues and expenses to the period in which they actually occurred.