Question

Which of the following items is prepared at the end of the accounting period immediately before the financial statements are prepared?

a)post-closing trial balance
b)adjusted trial balance
c)unadjusted trial balance

Answer 1

The item prepared at the end of the accounting period before financial statements are prepared is the adjusted trial balance, which helps ensure account accuracy and balance.

Step-by-step explanation:

The item that is prepared at the end of the accounting period immediately before the financial statements are prepared is the adjusted trial balance. The adjusted trial balance is created after adjusting entries have been made to account for any revenues, expenses, assets, or liabilities that were not properly recorded during the accounting period. It is used to ensure that the accounts are accurate and in balance before finalizing the financial statements.