On the adjusted trial balance,retained earnings is:
A)Stated at the period-end amount.
B)Stated at the period-beginning amount.
C)Adjusted for all revenues and expenses for the period.
D)Adjusted for the period's dividends.

Question

Quizplus · Accepted Answer

The adjusted trial balance is prepared after all the adjusting entries have been recorded and posted to the ledger accounts. Retained earnings account shows the total earnings of the company retained by the business over time. Since it is an ongoing cumulative account, the beginning balance of retained earnings is taken from the previous period's ending balance, and it is not adjusted on the current period's adjusted trial balance. Therefore, Option B is correct as the retained earnings account is stated at the period-beginning amount.

On the Adjusted Trial Balance,retained Earnings Is