An Unadjusted Trial Balance

question 104

Multiple Choice

An unadjusted trial balance:

• A)cannot be used to prepare financial statements.
• B)is prepared after end-of-period adjustments have been made.
• C)will not reflect up-to-date information for income taxes.
• D)contains final amounts for assets and liabilities,but not for revenues and expenses.

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Definitions:

Residual Claim

A claim entitling the holder to a share of a company's income after all obligations and debts have been settled.

Total Assets

Total assets represent the sum of all assets owned by a company, indicating the resources it has at its disposal to generate revenue.

Owner's Equity

The portion of a company's total value that belongs to its owners or shareholders, calculated as the company's total assets minus its total liabilities.