What Is the Major Difference Between the Unadjusted Trial Balance

question 197

Multiple Choice

What is the major difference between the unadjusted trial balance and the adjusted trial balance?

• A) The adjusted trial balance will show the net income (loss) as an additional account.
• B) Unlike the adjusted trial balance, the unadjusted trial balance will continue with the end-of-period processing even if it is not in balance.
• C) The adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts.
• D) The adjusted trial balance will be used to record the adjustments for the period.

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Definitions:

Total Revenue

The total amount of money generated by a company or entity from its primary activities, such as sales of goods or services, before any expenses are deducted.

AVC

Short for Average Variable Cost, it is the total variable costs (such as labor and materials) divided by the quantity of output produced.

ATC

Stands for "Average Total Cost," which is the total cost per unit of output in economics, calculated by dividing the total cost by the quantity produced.

Fixed Costs

Fixed expenses unaffected by variations in production volume or sales, like lease payments, employee salaries, and insurance fees.