The adjusted trial balance proves that:
A)all adjusting entries have been recorded correctly.
B)debit totals equal credit totals.
C)no adjusting entry has been entered twice.
D)the balance of the adjusted trial balance is correct.

Question

Quizplus · Accepted Answer

The adjusted trial balance shows the balances of all accounts after adjusting entries have been made. It is used to ensure that the total of all debits equals the total of all credits. If the debits and credits are equal, it means that no errors were made when recording the adjusting entries and the financial statements will be accurate. Therefore, option B is correct. Option A only confirms the accuracy of adjusting entries but not the balance itself. Option C talks about preventing duplication of entries, which may be a good practice but does not relate to the purpose of the adjusted trial balance. Lastly, option D is not valid because it assumes that the balance is correct without any explanation.

The Adjusted Trial Balance Proves That