2-3 Prepare Unadjusted Trial Balance Flashcards
1
Q
Unadjusted Trial Blance
A
List of general ledger accounts and their account balances in the following order: assets, liabilities, stockholder’s equity, revenues, expenses, gains, and losses
2
Q
What is Step 4 of the Accounting Cycle?
A
Prepare an Unadjusted Trial Balance
3
Q
When is an unadjusted Trial Balance typically prepared?
A
At the end of a reporting period
4
Q
What is the purpose of the unadjusted trial balance?
A
A means of checking that the sum of debit account balances equals the sum of credit account balances
5
Q
Does the equality of debits and credits on the trial balance imply that the accounts are error-free?
A
No
Unposted journal entries, incorrectly classified account, erroneous entry amounts (all errors that are not revealed in trial balance)
