Final Answer:
The trial balance prepared before the general ledger accounts are adjusted is called an adjusted trial balance is a) True
Step-by-step explanation:
The statement is true. The adjusted trial balance is prepared after the general ledger accounts are adjusted. This adjusted trial balance includes all the necessary adjustments made to the general ledger accounts, such as accruals, deferrals, depreciation, and any other necessary corrections. It ensures that the debits and credits in the ledger are in balance after all adjustments have been made.
The adjusted trial balance is a crucial step in the accounting cycle as it serves as the basis for preparing the financial statements. It provides an accurate summary of all the ledger accounts after adjustments, which helps in identifying any discrepancies or errors before finalizing the financial statements. The process involves transferring the balances from the general ledger to the adjusted trial balance and ensuring that total debits equal total credits.
Preparing an adjusted trial balance is essential for accurate financial reporting and decision-making. It provides a clear overview of the company’s financial position after considering all necessary adjustments, making it a vital tool for both internal and external stakeholders.