Question

Able Industries is a cash-basis entity, while Baker Company is an accrual-basis entity. While both companies will prepare a balance sheet and an income statement, only Baker will prepare a(n)

Answer 1

Adjusted trial balance

Step-by-step explanation:

Adjusted trial balance -

It refers to the internal document , which has all the ledger account titles along with the balances after any type of adjustment or alteration has been done , is referred to as adjusted trial balance.

It is a adjusted account balance not the financial statements.

In the adjusted trial balance the total amount of the debt equals the total credit balance .

Hence, from the given scenario of the question,

The correct term is Adjusted trial balance .