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Questions and Answers
What is the primary purpose of preparing a trial balance?
What is the primary purpose of preparing a trial balance?
- To prepare the financial statements
- To provide a summary of the ledger accounts
- To identify and correct errors in the ledger
- To ensure the debit and credit entries are equal (correct)
What is the main benefit of identifying the information needed in the preparation of the trial balance?
What is the main benefit of identifying the information needed in the preparation of the trial balance?
- It helps to identify errors in the ledger accounts
- It provides a comprehensive view of the company's financial position
- It ensures the accuracy of the financial statements
- It facilitates the preparation of the trial balance (correct)
What is the relationship between the ledger accounts and the trial balance?
What is the relationship between the ledger accounts and the trial balance?
- The trial balance is a summary of the ledger accounts (correct)
- The ledger accounts and trial balance are unrelated
- The trial balance is a subset of the ledger accounts
- The ledger accounts are a subset of the trial balance
What is the primary output of the trial balance preparation process?
What is the primary output of the trial balance preparation process?
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What is the purpose of preparing the trial balance in the context of the accounting process?
What is the purpose of preparing the trial balance in the context of the accounting process?
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Why do accountants and bookkeepers make adjustments?
Why do accountants and bookkeepers make adjustments?
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What could be the reason for adjusting an asset account?
What could be the reason for adjusting an asset account?
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Why might a liability account need to be adjusted?
Why might a liability account need to be adjusted?
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What is the purpose of preparing adjusting entries?
What is the purpose of preparing adjusting entries?
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What can be the consequence of not making adjustments?
What can be the consequence of not making adjustments?
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