An unadjusted trial balance:
A)cannot be used to prepare financial statements.
B)is prepared after end-of-period adjustments have been made.
C)will not reflect up-to-date information for income taxes.
D)contains final amounts for assets and liabilities,but not for revenues and expenses.

Question

Quizplus · Accepted Answer

The unadjusted trial balance is prepared before end-of-period adjustments are made (such as income taxes).While it can be used to prepare preliminary financial statements,those financial statements will not conform to GAAP or IFRS.When adjustments are made to update revenues and expenses,some asset and liability accounts (such as income taxes payable)will also be updated.

An Unadjusted Trial Balance