What is the purpose of the adjusted trial balance?
A) to verify that all of the adjusting entries have been posted
B) to verify that the net income (loss) is correctly reported
C) to verify that no adjusting journal entry has been omitted
D) to verify the equality of the debit and credit balances

Question

Quizplus · Accepted Answer

The purpose of the adjusted trial balance is to verify the equality of the debit and credit balances after adjusting entries have been made. This ensures that the books are accurate and ready for the preparation of financial statements. While verifying that all adjusting entries have been posted and that no adjusting entry has been omitted are also important aspects of the process, the primary purpose is to check the overall balance of accounts. The net income (loss) is calculated on the income statement and not on the adjusted trial balance.

What Is the Purpose of the Adjusted Trial Balance