Question

The adjusted trial balance should be prepared ______ the financial statements are prepared in order to prove the ______ of the debits and credits.

Answer 1

The adjusted trial balance should be prepared before the financial statements are prepared in order to prove the equality of the debits and credits.

An adjusted trial balance is a listing of all organization accounts that will show up on the budgetary explanations after year-end changing diary sections have been made.  

Setting up an adjusted trial balance is the fifth step in the bookkeeping cycle and is the last advance before monetary proclamations can be created.  

There are two fundamental approaches to set up an adjusted trial balance. Both ways are valuable relying upon the site of the organization and graph of records being utilized.