Mcgraw hill connect financial accounting answerschapter 4 homework
What does the accounting term “accrual basis” mean?
Adjusted Trial Balance :
After year-end changes have been made to the general ledger, the adjusted trial balance is an internal statement that shows the balances of all accounts. After all of the entries that change the balance have been taken into account, the adjusted trial balance is the current adjusted balance.
Retained earnings are the amount of profits that remain after all dividends have been paid to stockholders. With this money, the business will grow and make more money in the future. Most of the time, the “retained earnings” account for income has a credit balance. The trial balance is made up of the debit side and the credit side. Both the debit side and the credit side are always the same. So, the retained earnings are found by subtracting the balance on the credit side from the balance on the debit side.