When using an extended trial balance approach to recording end-of-period adjustments, there is a risk of errors and omissions as this approach will only result in the recording of one side of the transaction.

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The extended trial balance approach is designed to include both sides of adjusting entries (debits and credits) for each transaction, ensuring that the accounting equation remains balanced. This method helps in identifying and correcting errors and omissions by providing a comprehensive view of all accounts before and after adjustments.

When Using an Extended Trial Balance Approach to Recording End-Of-Period