Which type of trial balance is prepared after all adjusting entries have been posted at the end of an accounting period?

• A. Post-closing trial balance
• B. Pre-closing trial balance
• C. Unadjusted trial balance
• D. Adjusted trial balance

Answer: (D)

Verified step by step guidance

1. Understand the purpose of a trial balance: A trial balance is a list of all ledger accounts and their balances at a specific point in time. It is used to ensure that total debits equal total credits in the accounting system.
2. Learn about the types of trial balances: There are three main types of trial balances—unadjusted trial balance, adjusted trial balance, and post-closing trial balance. Each serves a specific purpose in the accounting cycle.
3. Focus on the adjusted trial balance: The adjusted trial balance is prepared after all adjusting entries have been posted at the end of the accounting period. Adjusting entries are made to account for accrued revenues, accrued expenses, depreciation, and other adjustments necessary to reflect the true financial position of the company.
4. Understand the timing of the adjusted trial balance: It is prepared before the financial statements are created, as it ensures that all accounts reflect accurate and updated balances after adjustments.
5. Differentiate from other trial balances: The unadjusted trial balance is prepared before adjustments, while the post-closing trial balance is prepared after closing entries to ensure that only permanent accounts remain open. The adjusted trial balance is specifically designed to reflect the updated balances after adjustments.