Question

The adjusted trial balance shows A. amounts that may be out of balance. B. revenues and expenses only. C. account balances after adjustments. D. assets and liabilities only.

Answer 1

Answer: c. Account balances after adjustments

Explanation: An adjusted trial balance contains all the ending balances in all accounts after adjusting entries (journal entries recorded at the end of an accounting period to alter the ending balances in various general ledger accounts) have been prepared. The purpose of adding these entries is to correct errors in the first draft of the trial balance and to bring the entity's financial statements into compliance with an accounting framework. Such accounting framework may be Generally Accepted Accounting Principles (GAPS) or International Financial Reporting standards (IFRS)