Which of the following is not an advantage of preparing an adjusted trial balance?
A) It verifies that the total DRs equal the total CRs in the ledger after the preparation of the adjusting entries.
B) It is a shortcut which means that the adjusting entries do not have to be entered into the ledger.
C) It assists in the preparation of the financial statements.
D) It reduces the possibility of errors being carried forward from the ledger into the financial reports.

Question

Quizplus · Accepted Answer

Preparing an adjusted trial balance involves entering the adjusting entries into the ledger, so it is not a shortcut to avoid entering the adjustments. Instead, it is a tool to verify that the ledger is in balance after the adjustments have been made and to assist in the preparation of accurate financial statements. Therefore, B is not an advantage of preparing an adjusted trial balance.

Which of the Following Is Not an Advantage of Preparing