The unadjusted trial balance does not reﬂect adjusting entries.

Question

Quizplus · Accepted Answer

The unadjusted trial balance only includes transactions that have been recorded by the company, but it does not account for adjusting entries that may be needed to accurately reflect the company's financial position at the end of an accounting period. These adjusting entries are typically made at the end of the period and are used to update account balances for items like prepaid expenses, accrued revenues, and accrued expenses. Therefore, the unadjusted trial balance may not provide a complete or accurate picture of a company's financial status.

The Unadjusted Trial Balance Does Not Reﬂect Adjusting Entries