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What is the difference between an adjusted trial balance and an unadjusted trial balance?


What is the difference between an adjusted trial balance and an unadjusted trial balance? (Check all that apply.) 


  • The unadjusted trial balance is more up to date and should be used to prepare financial statements. 

  • The adjusted trial balance is a list of accounts and their balances after adjusting entries have been posted. 

  • The adjusted trial balance is used to prepare financial statements. 

  • The adjusted trial balance generally has more accounts listed than the unadjusted trial balance.

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  • Statements that are correct are:
    #2: The adjusted trial balance is a lost of accounts and their balances after adjusting entries have been posted.
    Adjustments are made to the unadjusted balances to get the Adjusted Trial Balance.

#3: The adjusted trial balance is used to prepare financial statement. The balances in the Adjusted trial balance is used to prepare Income Statements and Balance Sheet.

#4: The adjusted trial balance generally has more accounts listed than the unadjusted trial balance, because there are certain adjustments that can lead to creation of balances in certain new accounts if no adjustments have been made to those account earlier like Interest Payable, Utilities Payable, etc.

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