객관식
A company's trial balance shows total debits of \$45,000 and total credits of \$42,500. If the only missing account is 'Accounts Receivable,' what is the correct balance for 'Accounts Receivable' to balance the trial balance?
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2. Transaction Analysis
Trial Balance
Multiple Choice
Which of the following best describes the purpose of the adjusted trial balance prepared by Blueboy Cheese Corporation as of December 31, 2024?
A
To ensure that total debits equal total credits after all adjusting entries have been made.
B
To prepare the statement of cash flows directly.
C
To record all cash transactions for the year.
D
To list only the accounts that have been closed for the period.
검증된 단계별 안내1
Understand the concept of an adjusted trial balance: It is a financial report prepared after all adjusting entries have been made at the end of an accounting period. Its primary purpose is to ensure that the accounting equation remains balanced, meaning total debits equal total credits.
Review the purpose of adjusting entries: Adjusting entries are made to update account balances for accruals, deferrals, depreciation, and other necessary adjustments to reflect the true financial position of the company.
Clarify the role of the adjusted trial balance: The adjusted trial balance is used to verify the accuracy of the ledger accounts and serves as the basis for preparing financial statements, such as the income statement, balance sheet, and statement of cash flows.
Eliminate incorrect options: The adjusted trial balance does not directly prepare the statement of cash flows, record cash transactions, or list closed accounts. These are separate processes or reports in accounting.
Select the correct purpose: The adjusted trial balance ensures that total debits equal total credits after all adjusting entries have been made, confirming the accuracy of the accounts before financial statements are prepared.
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