Which of the following best describes the difference between an unadjusted trial balance and an adjusted trial balance?
A)An unadjusted trial balance is prepared at the start of the accounting period and is not provided to external decision makers,while an adjusted trial balance is prepared at the end of the period and is provided to external decision makers.
B)An unadjusted trial balance is prepared by companies that make adjusting entries,while an adjusted trial balance is prepared by companies that do not make adjusting entries.
C)An unadjusted trial balance is prepared before the adjusting entries have been made,while an adjusted trial balance is prepared after the adjusting entries have been made.
D)An unadjusted trial balance is prepared after the post-closing trial balance.

Question

Quizplus · Accepted Answer

An unadjusted trial balance is prepared before the necessary adjusting entries have been made, while an adjusted trial balance is prepared after the adjusting entries have been made. The purpose of adjusting entries is to record transactions that have occurred but have not yet been recorded, such as accrued expenses or unearned revenues. Therefore, the adjusted trial balance reflects the updated account balances after these adjustments have been made.

Which of the Following Best Describes the Difference Between an Unadjusted