PRC-1 · Chapter 10 · Question 44 of 100
The primary difference between a Trial Balance and an Adjusted Trial Balance is that the Adjusted Trial Balance:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Reflects the effects of period-end adjustments such as depreciation, accruals, and prepayments.
Explanation
The adjusted trial balance is prepared after adjusting journal entries (for accruals, prepayments, depreciation, etc.) have been posted, ensuring the accounts are ready for financial statement generation.
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