What Is the Purpose of the Adjusted Trial Balance

question 194

Multiple Choice

What is the purpose of the adjusted trial balance?

• A) to verify that all of the adjusting entries have been posted
• B) to verify that the net income (loss) is correctly reported
• C) to verify that no adjusting journal entry has been omitted
• D) to verify that the debits and credits balance

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Definitions:

Subjective Nature

The characteristic of being based on or influenced by personal feelings, tastes, or opinions rather than external facts.

Functional Report

A document that focuses on the outcomes and results of specific functions or departments within an organization.

External Report

A document prepared to provide analysis, findings, or recommendations to parties outside of the organization, often for clients or public dissemination.

External Report

A report prepared for individuals or entities outside the organization, often to provide information or analysis about the organization's activities.