Prior to preparing the organization's financial statements, the accountant prepares
A)a balance sheet
B)a trial balance
C)an adjusted trial balance
D)a closed trial balance

Question

Quizplus · Accepted Answer

Before preparing financial statements, the accountant must prepare an adjusted trial balance. This includes making necessary adjustments to the trial balance, such as recording accrued expenses or revenue, in order to ensure accuracy in the financial statements. A balance sheet is one of the financial statements that will be prepared using the adjusted trial balance, and a closed trial balance is not a standard accounting term.

Prior to Preparing the Organization's Financial Statements, the Accountant Prepares