Which of the Following Is Not an Advantage of Preparing

question 17

Multiple Choice

Which of the following is not an advantage of preparing an adjusted trial balance?

• A) It verifies that the debits equal the credits in the ledger after the preparation of the adjusting entries.
• B) It reduces the possibility of errors being carried forward from the ledger into the accounting reports.
• C) It is a shortcut which means that the adjusting entries do not have to be entered into the ledger.
• D) It assists in the preparation of the financial statements.

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Definitions:

Equipment

Tangible property used in the operation of a business but not intended for resale, often with a longer life span.

Standard Format

A prescribed or agreed-upon arrangement and structure for organizing and presenting information or data.

Journal Entries

The recording of financial transactions in a company's accounting system, which includes a debit and a credit to maintain balance.

Salaries and Wages Expense

The total amount a company spends on employee salaries, wages, and other benefits during a fiscal period.