(a) An adjusted trial balance proves the equal- ity of the total debit balances and the total credit balances in the ledger after all ad- justments are made.

(b) The adjusted trial balance provides the pri- mary basis for the preparation of financial statements.

(c) The adjusted trial balance lists the account balances segregated by assets and liabilities.

(d) The company prepares the adjusted trial balance after it has journalized and posted the adjusting entries. Which one of these statements about the accrual basis of accounting is false?

(a) Companies record in the periods in which the events occur events that change a com- pany's financial statements.

(b) Companies recognize revenue in the period in which it is earned.

(c) This basis is in accord with generally ac- cepted accounting principles.

(d) Companies record revenue only when they receive cash, and record expense only when they pay out cash.

AppendixLO1