Once the adjusting entries are posted,the adjusted trial balance is prepared to
A)verify that the debits and credits are in balance
B)verify that the net income correctly flows into the statement of shareholders' equity from the income statement
C)verify that the net income loss is correct for the period
D)verify the correct flow of accounts into the financial statements

Question

Quizplus · Accepted Answer

The purpose of preparing an adjusted trial balance is to ensure that the total debits equal the total credits after all adjusting entries have been made. This verifies that the accounts are in balance and serves as the basis for preparing the financial statements. While the adjusted trial balance does provide information about the net income, this is not its primary purpose. Similarly, while the adjusted trial balance is used to prepare the financial statements and ensure that accounts are correctly flowed to them, this is not the main reason for preparing it.

Once the Adjusting Entries Are Posted,the Adjusted Trial Balance Is