Accountants and CPAs, why do we prepare a trial blanace b4 adjusting entries?

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Accountants and CPAs, why do we prepare a trial blanace b4 adjusting entries?

why don't we adjust entries to start with and then prepare a trial balance instead of preparing it twice?!

2007-10-17 09:21:41 · 2 answers · asked by suray f 2 in Business & Finance ➔ Other - Business & Finance

2 answers

You are a practical person. They teach you like this in school so you can fully understand the basics. When you come out to work, you won't find any experienced accountant preparing a TB before adjusting entries. Colossal waste of time!

2007-10-17 16:02:38 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋

The preliminary TB shows you blatant errors or mistakes in the first run, and will often dictate adjusting entries, or the magnitude of already known adjusting entries. How would you know what to adjust if you don't know where you're at?

2007-10-17 16:29:36 · answer #2 · answered by Drew 4 · 1⤊ 0⤋