The accounting cycle requires three trial balances be prepared. In what order are they prepared?
A) Post-closing, unadjusted, and adjusted
B) Unadjusted, post-closing, and adjusted
C) Unadjusted, adjusted, and post-closing
D) Post-closing, adjusted, and unadjusted

Question

Quizplus · Accepted Answer

The first trial balance prepared is the unadjusted trial balance, followed by the adjusted trial balance, and then the post-closing trial balance. This order follows the steps of the accounting cycle, which includes recording transactions, adjusting entries, and closing entries. The unadjusted trial balance is prepared after recording transactions, the adjusted trial balance is prepared after adjusting entries, and the post-closing trial balance is prepared after closing entries are made.

The Accounting Cycle Requires Three Trial Balances Be Prepared