Adjusting journal entries are prepared ________.
A) after preparing the adjusted trial balance
B) after preparing the unadjusted trial balance
C) after posting the closing entries
D) after preparing the financial statements

Question

Quizplus · Accepted Answer

Adjusting journal entries are prepared after the unadjusted trial balance is prepared and before the financial statements are prepared. This is to ensure that the financial statements reflect the correct amounts for revenues, expenses, assets, and liabilities.

Adjusting Journal Entries Are Prepared ________