Multiple Choice
What is the major difference between the unadjusted trial balance and the adjusted trial balance?
45
views
3. Accrual Accounting Concepts
Unadjusted vs Adjusted Trial Balance
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which section of the adjusted trial balance is used to help prepare the income statement?
A
The revenue and expense accounts section
B
The liability accounts section
C
The asset accounts section
D
The equity accounts section
Verified step by step guidance1
Understand the purpose of the income statement: It is a financial report that summarizes revenues and expenses to determine the net income or net loss for a specific period.
Identify the sections of the adjusted trial balance: The adjusted trial balance includes various accounts such as assets, liabilities, equity, revenues, and expenses.
Focus on the accounts relevant to the income statement: The income statement is prepared using the revenue and expense accounts because these accounts directly impact the calculation of net income or net loss.
Exclude other sections: Asset, liability, and equity accounts are not used in the preparation of the income statement as they are part of the balance sheet or statement of equity.
Conclude that the revenue and expense accounts section of the adjusted trial balance is used to prepare the income statement.
6:02mWatch next
Master Unadjusted vs Adjusted Trial Balance with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Unadjusted vs Adjusted Trial Balance practice set
Problem sets built by lead tutorsExpert video explanations