What Is the Major Difference Between the Unadjusted Trial Balance

question 139

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:

Simple Annual Rate

The interest rate without compounding, indicating the flat yearly cost of borrowing or the annual rate of interest paid on an investment.

Interest Earned

Interest earned is the amount of money gained as interest from savings accounts, investments, or bonds over a certain period.

Annual Rate

the interest rate for a whole year, rather than just a shorter period.

Accrued Interest

The interest on a loan or bond that has accumulated since the principal investment, or since the last interest payment, if there has been one.