What does the "Adjusted Trial Balance" represent?

The Adjusted Trial Balance represents the balances of all accounts in the general ledger after adjusting entries have been made. This statement is a crucial step in the accounting cycle, as it ensures that total debits equal total credits after the necessary adjustments for accrued revenues, accrued expenses, deferred revenues, and deferred expenses have been recognized.

By compiling the Adjusted Trial Balance, accountants can verify that the financial statements are accurately reflecting the financial position of the company before external reporting. It serves as a tool for identifying errors that may still exist after the adjustments have been made. The adjusted balances offer a more complete and accurate picture of a company's financial status, ensuring that all revenue and expense transactions are properly accounted for within the period in which they occur.