A trial balance that indicates all accounts have been adjusted before financial statements are prepared is called?

The term for a trial balance that shows all accounts have been adjusted prior to the preparation of financial statements is known as an Adjusted Trial Balance. This document reflects the balances of all accounts after adjusting entries are made, ensuring that all revenues and expenses are recorded accurately before the financial statements are generated. The adjusted trial balance serves as a summary of all adjustments made, confirming that the total debits equal total credits, which is essential for the integrity of the accounting process.

Using an adjusted trial balance helps accountants verify the accuracy of the ledger and serves as a foundation for creating the income statement, balance sheet, and cash flow statement. It ensures that financial information presented to stakeholders is both accurate and comprehensive, thus facilitating better financial decision-making.