Which of the following is not an advantage of preparing an adjusted trial balance?
A) It verifies that the debits equal the credits in the ledger after the preparation of the adjusting entries.
B) It reduces the possibility of errors being carried forward from the ledger into the accounting reports.
C) It is a shortcut which means that the adjusting entries do not have to be entered into the ledger.
D) It assists in the preparation of the financial statements.

Question

Quizplus · Accepted Answer

Preparing an adjusted trial balance involves entering the adjusting entries into the ledger to ensure that the debits and credits are still equal. Therefore, option C is incorrect as adjusted entries do need to be entered into the ledger to prepare the adjusted trial balance. The other options all describe advantages of preparing an adjusted trial balance.

Which of the Following Is Not an Advantage of Preparing