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

3. Accrual Accounting Concepts

Unadjusted vs Adjusted Trial Balance

Financial Accounting

3. Accrual Accounting Concepts

Unadjusted vs Adjusted Trial Balance

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Multiple Choice

Which of the following would NOT cause the adjusted trial balance totals to be unequal?

Omitting a credit entry in the adjusted trial balance

Posting a journal entry to the wrong account but with correct debit and credit amounts

Failure to record an adjusting entry for accrued expenses

Recording a $500 debit as $50 in the ledger

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Verified step by step guidance

Understand the purpose of an adjusted trial balance: It is used to ensure that total debits equal total credits after adjustments are made to the accounts.

Analyze each option to determine its impact on the adjusted trial balance totals: For example, omitting a credit entry would cause the totals to be unequal because the credit side would be understated.

Consider the option 'Posting a journal entry to the wrong account but with correct debit and credit amounts': This would not affect the equality of the adjusted trial balance totals because the debit and credit amounts are still balanced, even if posted to the wrong account.

Evaluate the option 'Failure to record an adjusting entry for accrued expenses': This would cause the adjusted trial balance totals to be unequal because the necessary adjustment is missing, leading to an imbalance.

Assess the option 'Recording a $500 debit as $50 in the ledger': This would cause the adjusted trial balance totals to be unequal because the debit side would be understated by $450.