An adjusted trial balance
A)is prepared after the financial statements are completed.
B)proves the equality of the total debit balances and total credit balances of ledger accounts after all adjustments have been made.
C)is a required financial statement under generally accepted accounting principles.
D)cannot be used to prepare financial statements.

Question

Quizplus · Accepted Answer

An adjusted trial balance is prepared after all adjusting entries have been made, and it proves the equality of the total debit balances and total credit balances of ledger accounts. It is not a financial statement, but it is a useful tool for preparing financial statements. Therefore, option (B) is the correct choice.

An Adjusted Trial Balance