Adjusted trial balance
Adjusted trial balance is a list of accounts and their balances after the company has made all adjustments.
An adjusted trial balance shows the balances of all accounts, including those that have been adjusted, at the end of an accounting period. Its purpose is to prove the equality of the total debit balances and the total credit balances in the ledger after all adjustments. The accounts in the adjusted trial balance contain all data that the company needs to prepare financial statements.
Category: Accounting & Auditing
Previous: ← Accrued expenses
Next: Worksheet →
More from this Section
- Notes payable
Companies record obligations in the form of written promissory notes, called notes payable. ... - Definition of Audit
The word “audit” is derived from the Latin word “audire”, which means to hear. ... - Discounted operations
Discounted operations refer to the disposal of a significant component of a business. ... - Cash budget
The cash budget is a projection of anticipated cash flows. Because cash is so vital, this ... - Stock investments
Stock investments are investments in the capital stock of other corporations. When a company ...