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10 August, 14:15

Able Industries is a cash-basis entity, while Baker Company is an accrual-basis entity. While both companies will prepare a balance sheet and an income statement, only Baker will prepare a (n)

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  1. 10 August, 14:23
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    Adjusted trial balance

    Explanation:

    Adjusted trial balance -

    It refers to the internal document, which has all the ledger account titles along with the balances after any type of adjustment or alteration has been done, is referred to as adjusted trial balance.

    It is a adjusted account balance not the financial statements.

    In the adjusted trial balance the total amount of the debt equals the total credit balance.

    Hence, from the given scenario of the question,

    The correct term is Adjusted trial balance.
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