A trial balance prepared before any adjustments have been recorded is:
A) An unadjusted trial balance.
B) Only prepared once a year.
C) Used to prepare financial statements.
D) An adjusted trial balance.
E) Correct with respect to proper balance sheet and income statement amounts.

Question

Quizplus · Accepted Answer

An unadjusted trial balance is prepared before any adjustments have been recorded. It is used to ensure that the total debits equal the total credits and to identify any errors in the general ledger accounts. It does not include any adjustments and therefore may not reflect accurate balance sheet and income statement amounts.

A Trial Balance Prepared Before Any Adjustments Have Been Recorded