Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

2. Transaction Analysis

Trial Balance

Financial Accounting

2. Transaction Analysis

Trial Balance

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following best describes the purpose of Valley Company's adjusted trial balance as of August 31, 2017?

To ensure that total debits equal total credits after all adjustments have been made.

To prepare the company's bank reconciliation statement.

To record all cash transactions for the fiscal year.

To determine the amount of taxes owed for the year.

Previous problemNext problem

Verified step by step guidance

Understand the concept of an adjusted trial balance: It is a financial statement prepared after adjusting journal entries are made at the end of an accounting period. Its primary purpose is to ensure that total debits equal total credits and to provide accurate account balances for preparing financial statements.

Analyze the options provided in the question: The adjusted trial balance is not used to prepare a bank reconciliation statement, record cash transactions, or determine taxes owed. These tasks are separate processes in accounting.

Focus on the correct purpose: The adjusted trial balance ensures that all adjustments (e.g., accruals, deferrals, depreciation) have been properly recorded and that the accounting equation remains balanced.

Relate the adjusted trial balance to financial statement preparation: It serves as the foundation for creating the income statement, balance sheet, and statement of cash flows, ensuring the accuracy of these reports.

Conclude that the correct answer is: 'To ensure that total debits equal total credits after all adjustments have been made,' as this aligns with the primary purpose of the adjusted trial balance.