The accounting cycle requires three trial balances be done. In what order should they be prepared?
A) Post-closing, unadjusted, adjusted
B) Unadjusted, post-closing, adjusted
C) Unadjusted, adjusted, post-closing
D) Post-closing, adjusted, unadjusted

Question

Quizplus · Accepted Answer

The unadjusted trial balance is prepared first to ensure that all transactions have been recorded correctly. Then, adjustments are made to the accounts, and an adjusted trial balance is prepared to ensure the accounts are accurate after the adjustments have been made. Finally, after the closing entries have been made, a post-closing trial balance is prepared to ensure that the accounts are in balance and ready to begin the next accounting period. Therefore, the correct order is unadjusted, adjusted, and post-closing.

The Accounting Cycle Requires Three Trial Balances Be Done