What is an adjusted trial balance Why is it prepared?

An adjusted trial balance is an internal document that summarizes all of the current balances available in general ledger accounting. The adjusted trial balance is prepared to show updated balances after adjusting entries have been made.

What are the 5 types of adjusting entries?

Adjustments entries fall under five categories: accrued revenues, accrued expenses, unearned revenues, prepaid expenses, and depreciation.

What is an example of an adjustment?

noun. 1. The definition of adjustment is the act of making a change, or is the change that was made. An example of an adjustment is the time that it takes for a person to become comfortable living with someone else.

What are 2 examples of adjustments?

Examples of accounting adjustments are as follows:

• Altering the amount in a reserve account, such as the allowance for doubtful accounts or the inventory obsolescence reserve.
• Recognizing revenue that has not yet been billed.
• Deferring the recognition of revenue that has been billed but has not yet been earned.