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

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Multiple Choice

When is the adjusted trial balance typically prepared in the accounting cycle?

After all adjusting entries have been journalized and posted

Before any transactions are recorded

Immediately after the unadjusted trial balance is prepared, but before adjusting entries

After the financial statements are prepared

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Verified step by step guidance

Understand the purpose of the adjusted trial balance: It is prepared to ensure that all adjusting entries have been correctly journalized and posted, and that the ledger accounts are updated before preparing financial statements.

Review the sequence of the accounting cycle: The adjusted trial balance is typically prepared after the unadjusted trial balance and after all adjusting entries have been journalized and posted.

Clarify the role of adjusting entries: Adjusting entries are made to account for accruals, deferrals, and other necessary adjustments to ensure the financial statements reflect the true financial position of the company.

Determine the timing of the adjusted trial balance: It is prepared after all adjusting entries are completed but before the financial statements are prepared, as it serves as the basis for creating those statements.

Eliminate incorrect options: The adjusted trial balance is not prepared before transactions are recorded, nor immediately after the unadjusted trial balance but before adjusting entries. It is prepared specifically after adjusting entries are journalized and posted.