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The correct statement is b) An adjusted trial balance is prepared after adjustments are posted, so new accounts may need to be added.
An adjusted trial balance is prepared with the aid of growing a sequence of journal entries which are designed to account for any transactions that have now not been completed. Those gadgets encompass payroll fees, prepaid costs, and depreciation prices.
An adjusted trial balance lists the overall ledger account balances after any modifications had been made. Those changes commonly consist of those for prepaid and gathered expenses, as well as non-cash charges like depreciation. it is that simple.
The adjusted trial stability is used to prepare financial statements. The adjusted trial stability commonly has extra bills indexed than the unadjusted trial balance. The adjusted trial stability is a list of bills and their balances after adjusting entries have been posted.
The question is incomplete. Please read below to find the missing content.
Demonstrate your knowledge of preparing an adjusted trial balance by selecting the correct statement below.
a) An adjusted trial balance is a list of accounts and balances prepared before adjustments are posted.
b) An adjusted trial balance is prepared after adjustments are posted, so new accounts may need to be added.
c) The debit and credit column totals don't have to equal each other on an adjusted trial balance.
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