Which of the following is the essential difference between an unadjusted trial balance and an adjusted trial balance?
A) An unadjusted trial balance is prepared at the start of the accounting year, while an adjusted trial balance is prepared at the end of the year.
B) An unadjusted trial balance is prepared by companies which 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 are reﬂected, while an adjusted trial balance is prepared after the adjusting entries are reﬂected.
D) An unadjusted trial balance is prepared after the post-closing trial balance.

Question

Quizplus · Accepted Answer

The essential difference lies in the timing of their preparation in relation to adjusting entries. An unadjusted trial balance is prepared before adjusting entries are made to account for accruals, deferrals, and other adjustments. An adjusted trial balance is prepared after these entries have been made, reflecting the true financial position of the company at the end of the accounting period.

Which of the Following Is the Essential Difference Between an Unadjusted