A trial balance prepared before any adjustments have been recorded is:
A) An adjusted trial balance.
B) Used to prepare financial statements.
C) An unadjusted trial balance.
D) Correct with respect to proper balance sheet and income statement amounts.
E) Only prepared once a year.

Question

Quizplus · Accepted Answer

A trial balance prepared before any adjustments have been recorded is called an unadjusted trial balance. It is prepared to ensure that the total debits equal the total credits and is used as a starting point for making adjusting entries. It is not correct with respect to proper balance sheet and income statement amounts until adjustments have been recorded. It is prepared more than once a year - typically monthly or quarterly.

A Trial Balance Prepared Before Any Adjustments Have Been Recorded