A Trial Balance Prepared Before Any Adjustments Have Been Recorded

question 114

Multiple Choice

A trial balance prepared before any adjustments have been recorded is:

• A) An adjusted trial balance.
• B) Used to prepare financial statements.
• C) An unadjusted trial balance.
• D) Correct with respect to proper balance sheet and income statement amounts.
• E) Only prepared once a year.

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Definitions:

Units-Of-Production

A method of depreciation that distributes an asset's cost across its lifespan according to the quantity of units manufactured.

Double-Declining-Balance

An accelerated method of depreciation that doubles the rate at which an asset's book value decreases, resulting in higher depreciation expenses in the early years.

Straight-Line Method

A depreciation technique that allocates an equal amount of depreciation expense for a tangible asset over each year of its useful life.

Units-Of-Production

Units-of-production is a method of depreciation that allocates the cost of an asset over its useful life based on the number of units it produces, reflecting wear and use more accurately.