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 the adjusted trial balance prepared by Blueboy Cheese Corporation as of December 31, 2024?

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

To prepare the statement of cash flows directly.

To record all cash transactions for the year.

To list only the accounts that have been closed for the period.

Previous problemNext problem

Verified step by step guidance

Understand the concept of an adjusted trial balance: It is a financial report prepared after all adjusting entries have been made at the end of an accounting period. Its primary purpose is to ensure that the accounting equation remains balanced, meaning total debits equal total credits.

Review the purpose of adjusting entries: Adjusting entries are made to update account balances for accruals, deferrals, depreciation, and other necessary adjustments to reflect the true financial position of the company.

Clarify the role of the adjusted trial balance: The adjusted trial balance is used to verify the accuracy of the ledger accounts and serves as the basis for preparing financial statements, such as the income statement, balance sheet, and statement of cash flows.

Eliminate incorrect options: The adjusted trial balance does not directly prepare the statement of cash flows, record cash transactions, or list closed accounts. These are separate processes or reports in accounting.

Select the correct purpose: The adjusted trial balance ensures that total debits equal total credits after all adjusting entries have been made, confirming the accuracy of the accounts before financial statements are prepared.