Final answer:
The statement about the adjusted trial balance that is not true is 'C. It Reflects Closing Entries.' The adjusted trial balance is prepared after adjustments and before closing entries, ensuring total debits equal total credits, and it includes adjusted revenues and expenses, not the unadjusted or post-closing balances.
Step-by-step explanation:
The statement about the adjusted trial balance that is not true is: C. It Reflects Closing Entries. An adjusted trial balance is prepared after all adjusting entries are made in the general journal and posted to the general ledger, but it is done before closing entries are made. The purpose of the adjusted trial balance is to ensure that the total debits equal the total credits after adjustments, reflecting the company's financial position accurately at the end of an accounting period. To understand why option C is incorrect, let's review its components:
Thus, the adjusted trial balance includes the updated balances for revenues and expenses after adjustments but before closing entries are applied to the accounts.