After adjusting entries, which report lists all accounts with their balances and is used to prepare financial statements?

After adjusting entries, which report lists all accounts with their balances and is used to prepare financial statements?

• A. The General Ledger
• B. The Adjusted Trial Balance
• C. The Unadjusted Trial Balance
• D. The General Journal

Answer: (B)

After adjusting entries, you need a single listing of every account with its post-adjustment balance to prepare financial statements. That is the adjusted trial balance. It gathers all asset, liability, equity, revenue, and expense balances after adjustments and confirms that total debits equal total credits, providing the numbers you’ll use to build the income statement and balance sheet. The general ledger is the set of all accounts and their balances, which underpins the trial balance, but the formal report used to prepare statements is the adjusted trial balance. The unadjusted trial balance comes before adjustments, and the general journal is where transactions are originally recorded.

After adjusting entries, you need a single listing of every account with its post-adjustment balance to prepare financial statements. That is the adjusted trial balance. It gathers all asset, liability, equity, revenue, and expense balances after adjustments and confirms that total debits equal total credits, providing the numbers you’ll use to build the income statement and balance sheet. The general ledger is the set of all accounts and their balances, which underpins the trial balance, but the formal report used to prepare statements is the adjusted trial balance. The unadjusted trial balance comes before adjustments, and the general journal is where transactions are originally recorded.