Adjusted Trial Balance
Preparing for Financial Statements
After all adjusting entries have been posted, an adjusted trial balance is prepared. This version contains updated account balances and serves as the primary source for preparing financial statements.
- Reflects all adjusting entries.
- Confirms debits equal credits.
- Provides final balances before reporting.
- Supports preparation of every financial statement.
Summary
The adjusted trial balance represents the final set of account balances before financial statements are prepared.