An adjusted trial balance is prepared to
A)test that the ledger is in balance after the accounts have been adjusted.
B)facilitate preparation of the adjusting entries.
C)both test that the ledger is in balance after the accounts have been adjusted and facilitate preparation of the financial statements.
D)facilitate preparation of the financial statements.

Question

Quizplus · Accepted Answer

An adjusted trial balance serves a dual purpose of testing if the ledger is in balance after adjusting entries have been made and facilitating the preparation of financial statements. It is prepared after adjusting entries are recorded and before the financial statements are produced. Therefore, option C is the correct answer.

An Adjusted Trial Balance Is Prepared to