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An additional information provided below the Trial balance is known as ________.
An additional information provided below the Trial balance is known as ________.
A
Information
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B
Adjustments
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C
Rectification
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D
Closing
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Solution
The correct option is D Adjustments
The additional information that is provided after the completion of the trial balance are known as adjustments. Sometimes, When financial statements are prepared, some items are either not recorded in the books. Hence, financial statements do not depict the true and fair view of the financial position of the business. Thus, in order to get a clear financial picture, these adjustments are provided as additional information and entries passed for such transactions are called adjusting entries.
The additional information that is provided after the completion of the trial balance are known as adjustments.
Sometimes, When financial statements are prepared, some items are either not recorded in the books. Hence, financial statements do not depict the true and fair view of the financial position of the business.
Thus, in order to get a clear financial picture, these adjustments are provided as additional information and entries passed for such transactions are called adjusting entries.
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