Concept: Unadjusted vs Adjusted Trial Balance7m
If Robert paid for 6 months of rent in advance on 7/1/16 for $4,800 ($800 per month). What is the next step for Robert after he finishes recording and posting adjusting entries on 12/31/16?
a. Prepares the financial statements
b. Closes the entries
c. Prepares an unadjusted trial balance
d. Prepares an adjusted trial balance
Which of the following statements is FALSE?
A. A trial balance is prepared at the end of the month, after items have been posted to the general ledger.
B. Journal entries are posted in the general journal, and then amounts are posted to the general ledger.
C. The balance sheet is prepared first, then the income statement, then the statement of retained earnings.
D. A trial balance ensures that all debits = all credits.
Financial statements are prepared from:
A) an adjusted trial balance
B) the general journal
C) the previous year's financial statements
D) an unadjusted trial balance