Which of the statements below is not true?An adjusted trial balance can beused to prepare financialstatements.O An adjusted trial balance shouldshow ledger account balances.O An adjusted trial balance provesthe mathematical equality ofdebits and credits in the ledger.O An adjusted trial balance isprepared before all transactionshave been journalized.

An adjusted trial balance is an internal document that summarizes the ending balances in all…

Answered: Which of the statements below is not…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 17MC: Which of the following accounts balance would be a different number on the Balance Sheet than it is...

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When preparing a trial balance, which of the following is correct? a. The purpose of the trial balance is to prove that the total of all debit balances equals the total of all credit balances. b. Advertising Expense would normally be recorded as a credit. c. The trial balance is considered to be a financial statement. d. Supplies would normally be recorded as a credit.
Why is the adjusted trial balance trusted as a reliable source for building the financial statements?
Prepare an adjusted trial balance from the following adjusted account balances (assume accounts have normal balances).
Which of the following accounts balance would be a different number on the Balance Sheet than it is on the adjusted trial balance? A. accumulated depreciation B. unearned service revenue C. retained earnings D. dividends
Which set of accounts has the same type of normal balance? A. Cash, accounts payable B. Prepaid rent, unearned service revenue C. Dividends, common stock D. Accounts payable, retained earnings
Which of the following statements is false? Adjusting entries are necessary because timing differences exist between when a revenue or expense is recognized and cash is received or paid. Adjusting entries always affect at least one revenue or expense account and one asset or liability account. The cash account will always be affected by adjusting journal entries. Adjusting entries can be classified as either accruals or deferrals.
Indicate on which financial statement the following accounts (from the adjusted trial balance) would appear: (A) Sales Revenue; (B) Unearned Rent Revenue; (C) Prepaid Advertising; (D) Advertising Expense; (E) Dividends; (F) Cash.
Which of the following statements is incorrect concerning the adjusted trial balance? A. THE ADJUSTED TRIAL BALANCE IS PREPARED AFTER THE ADJUSTING ENTRIES HAVE BEEN JOURNALIZED AND POST B.THE ADJUSTED TRIAL BALANCE LIST THE ACCOUNT BALANCES SEGREGATED BY ASSETS AN LIABILITIES. C. AN ADJUSTED TRIAL BALANCE PROVES THE EQUALITY OF TGE TOTAL DEBIT BALANCES ANS THE TOTAL CREDIT BALANCE IN THE LEDGER AFTER ALL ADJUSTMENT ARE MADE. D. THE ADJUSTED TRIAL BALANCE PROVIDES THE PRIMARY BASIS FOR THE PREPARATIONOF FINANCIAL STATMENTS
Which of the following statements is incorrect regarding preparing financial statements?a. The adjusted trial balance lists only the balance sheet accounts in "debit" and "credit" format.b. The adjusted trial balance is the primary source of information needed to prepare the financial statements.c. The financial statements are prepared in the following order: (1) the income statement, (2) the retained earnings statement, and (3) the balance sheet.d. The income statement and the balance sheet are related through the retained earnings account.
Which of the following is provided by a trial balance inwhich total debits equal total credits?a. Proof that no transaction was completely omitted fromthe ledger during the posting process.b. Proof that the correct debit or credit balance has beencomputed for each account.c. Proof that the ledger is in balance.d. Proof that transactions have been correctly analyzed andrecorded in the proper accounts.
Which of the following statements about a trial balance is correct? Select one: All of these answer choices are correct. A trial balance proves the equality of the debits and credits in the ledger. A trial balance is typically prepared before adjusting entries are recorded. An adjusted trial balance provides a list of open accounts and their balances that are used in preparing financial statements.
Which of the following statement is correct relative to trial balance? A. The trial balance is usually contains the account balances that should appear in the financial statements B. The trial balance proves that no errors have been made C. The trial balance provides information that is helpful when making adjusting entries. D. The trial balance is a summary taken directly from the genral journal Which of the following statement is not correct as to why an entity must make adjusting entries? A. To prepare reliable income statement and statement of financial position B. To ensure that the revenue recognitionand expense recognition principles are followed C. To prepare for closing and reversing entries D. To account for accruals and deferrals

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