Trial balances are prepared in a certain order. Given the choices below, which one depicts the trial balances in the correct order in which they would be prepared?
A)trial balance, post-closing trial balance, adjusted trial balance.
B)post-closing trial balance, adjusted trial balance, trial balance.
C)trial balance, adjusted trial balance, post-closing trial balance.
D)adjusted trial balance, trial balance, post-closing trial balance.

Question

Quizplus · Accepted Answer

The trial balance is prepared first to ensure that debits and credits are equal. Next, adjustments are made to certain accounts and a new trial balance is prepared, known as an adjusted trial balance. Finally, after closing entries have been made, a post-closing trial balance is prepared to ensure that all temporary accounts have been closed and the ledger is in balance. Therefore, the correct order is trial balance, adjusted trial balance, and post-closing trial balance, which is depicted in choice C.

Trial Balances Are Prepared in a Certain Order