What is the major difference between the unadjusted trial balance and the adjusted trial balance?
A) The adjusted trial balance will show the net income (loss) as an additional account.
B) Unlike the Adjusted Trial Balance, the Unadjusted Trial Balance will continue with the end-of-period processing even if it is not in balance.
C) The adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts.
D) The adjusted trial balance will be used to record the adjustments for the period.

Question

Quizplus · Accepted Answer

The major difference between the unadjusted trial balance and the adjusted trial balance is that the adjusted trial balance includes the postings of the adjustments made during the accounting period in the balance of the accounts. This means that the account balances in the adjusted trial balance have been updated to reflect the effects of the adjusting entries made at the end of the period. The unadjusted trial balance, on the other hand, only shows the balances of accounts before any adjustments have been made. Option A is incorrect because both the unadjusted and adjusted trial balances will show the net income or loss account. Option B is also incorrect because both types of trial balances are prepared to ensure that debits and credits are equal and the accounts are in balance. Option D is partially correct, but it does not fully capture the main difference between the two trial balances.

What Is the Major Difference Between the Unadjusted Trial Balance