Question

(True) or (False)? If all columns balance upon completion of the adjusted trial balance, you can be sure that no errors were made and that you can proceed with the financial statements.

Answer 1

True

Step-by-step explanation:

First, we have to understand what is trial balance. The trial balance is the balance of the debit and the credit columns which are equal and balanced. The trial balance records the assets, expenses in the debit columns and in the credit columns, the revenue, liabilities, and the stockholder equity is recorded.

And, the adjusting trial balance is the trial balance which is prepared after passing the adjusting entries

If there is no error found with the adjusted trial balance, the same items with the same amount is carried forward to prepare the financial statement i.e income statement, statement of the stockholder equity, balance sheet, and the cash flow statement