Which statement is not correct?
A)the post-closing trial balance reports the ending balance of each account in the general ledger
B)one purpose of preparing the unadjusted trial balance is to ensure that debits equal credits
C)financial statements are prepared based on the unadjusted trial balance
D)the unadjusted trial balance reports control account balances but omits subsidiary ledger detail

Question

Quizplus · Accepted Answer

Financial statements are prepared based on the adjusted trial balance, not the unadjusted trial balance. The purpose of the unadjusted trial balance is to ensure that debits equal credits and to identify any errors before adjustments are made. The post-closing trial balance reports the ending balances of each account in the general ledger after adjusting and closing entries have been made, and the unadjusted trial balance reports all account balances, including subsidiary ledger detail.

Which Statement Is Not Correct