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 best describes the purpose of an unadjusted trial balance for Kelly Consulting?

It shows only the revenue and expense accounts after all adjustments have been posted.

It lists all account balances before adjusting entries are made to ensure total debits equal total credits.

It includes only the accounts that will appear on the income statement.

It is prepared after closing entries to verify that the ledger is in balance.

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Verified step by step guidance

Understand the concept of an unadjusted trial balance: An unadjusted trial balance is a list of all ledger accounts and their balances before any adjusting entries are made. Its primary purpose is to ensure that the total debits equal total credits, verifying the accuracy of the bookkeeping process.

Analyze the options provided in the problem: Carefully read each option and determine whether it aligns with the purpose of an unadjusted trial balance.

Eliminate incorrect options: For example, the option stating that it includes only revenue and expense accounts is incorrect because an unadjusted trial balance includes all accounts, not just those on the income statement.

Focus on the correct purpose: The correct purpose of an unadjusted trial balance is to list all account balances before adjustments are made, ensuring that total debits equal total credits.

Select the correct answer: Based on the analysis, choose the option that accurately describes the purpose of an unadjusted trial balance, which is to verify that total debits equal total credits before adjustments are made.