An optional columnar working paper used to prepare a company's unadjusted trial balance, adjusting entries, adjusted trial balance, and financial statements is a(n):
A) Unadjusted trial balance.
B) Adjusted trial balance.
C) Work sheet.
D) General ledger.
E) Post-closing trial balance.

Question

Quizplus · Accepted Answer

A work sheet is a tool used to aid in the preparation of financial statements, including the unadjusted trial balance, adjusting entries, adjusted trial balance, and financial statements. It is a columnar working paper that is not required by GAAP, but is often used by companies for internal record-keeping purposes. The work sheet allows for easy identification and adjustment of errors or omissions, and ensures that all accounts are properly accounted for before finalizing the financial statements. The other options listed are not specific to the preparation of a work sheet, and do not necessarily provide the same level of detail or organization.

An Optional Columnar Working Paper Used to Prepare a Company's