Which statement below is incorrect?
A)An adjusted trial balance should show ledger account balances.
B)An adjusted trial balance can be used to prepare financial statements.
C)An adjusted trial balance proves the mathematical equality of debits and credits in the ledger.
D)An adjusted trial balance is prepared after the financial statements are completed.

Question

Quizplus · Accepted Answer

An adjusted trial balance is prepared before the financial statements are completed, not after. It is used to ensure that the total debits equal the total credits after adjustments, which then allows for the preparation of accurate financial statements.

Which Statement Below Is Incorrect