Which statement is true about an adjusted trial balance?
A)It is prepared before adjusting entries.
B)Revenue accounts and expense accounts should not appear on the adjusted trial balance.
C)Balance sheet items are presented before income statement items.
D)Accumulated depreciation should equal depreciation expense.

Question

Quizplus · Accepted Answer

The adjusted trial balance is prepared after adjusting entries are made and before the financial statements are prepared. It lists all the accounts including revenue, expenses, assets, and liabilities, with their adjusted balances. Balance sheet items are indeed presented before income statement items, ensuring that assets, liabilities, and equity accounts are listed before revenues and expenses.

Which Statement Is True About an Adjusted Trial Balance