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 for the period in the balance of the accounts. The Unadjusted Trial Balance only includes the raw balances of the accounts before any adjustments are made. Therefore, the Adjusted Trial Balance provides a more accurate representation of the financial position of the company. Choice A is incorrect because the net income (loss) is not a separate account, but rather is included in the retained earnings account. Choice B is incorrect because both the Unadjusted and Adjusted Trial Balances must be in balance before end-of-period processing can continue. Choice D is incorrect because the adjustments are made in the adjusting entries, not in the Adjusted Trial Balance itself.

What Is the Major Difference Between the Unadjusted Trial Balance