Which of the following trial balances shows account balances that incorporate current year deferrals and accruals?
A)Adjusted trial balance.
B)Final trial balance.
C)Unadjusted trial balance.

Question

Quizplus · Accepted Answer

The adjusted trial balance includes adjustments for deferrals (prepaid expenses and unearned revenues) and accruals (accrued expenses and accrued revenues) made at the end of the accounting period. The unadjusted trial balance includes only the account balances without any adjustments. The final trial balance is the same as the adjusted trial balance but is prepared after all closing entries have been made at the end of the accounting period.

Which of the Following Trial Balances Shows Account Balances That