Question

which of the actions is taken after adjusting entries are prepared at the end of an...

which of the actions is taken after adjusting entries are prepared at the end of an accounting period?

a. An adjusted trial balance is prepared to ensure the the company has earned a positive net income

b. An adjusted trial balance is prepared to ensure the the debit balances equals credit balances

c. after the adjusted trial balance is completed the account cycle is complete

d. the accounts in the adjusted trial balance are ready to be used for the next accounting period

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Answer #2

Answer is Part B)

"An adjusted trial balance is prepared to ensure the the debit balances equals credit balances"

The other options are not right because:

Part A) "An adjusted trial balance is prepared to ensure the the company has earned a positive net income"

Net Income can be positive(profit) or negative (loss).

Part C) " after the adjusted trial balance is completed the account cycle is complete"

The accounting cycle will complete after next 2 steps are complete that is the Financial Statements( Balance Sheet , Profit and Loss Mainly) and Closing Entries ( closing temporary account of revenue and expense) are closed.

Part D) " the accounts in the adjusted trial balance are ready to be used for the next accounting period"

Only after Closing entries have been made in the final step of accounting cycle can accounts be deemed ready for next period.

answered by: anonymous
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