What does an adjusted trial balance display?

An adjusted trial balance displays the balances of accounts after adjusting entries have been made. This document is crucial in the accounting cycle as it ensures that all adjustments have been recorded properly before preparing the financial statements.

The purpose of the adjusted trial balance is to verify that the total debits equal the total credits after adjustments are applied, reflecting an accurate financial position of the business at that point in time. This includes corrections for errors, accruals, and deferrals that are necessary to bring the accounts up to date.

In contrast, other options refer to differing aspects of accounting. For instance, displaying final amounts before year-end adjustments pertains to what would be seen in an unadjusted trial balance, while transactions for the accounting period would fall under the detailed recording of financial activities, not summarized account balances. Estimates of future earnings involve projections and forecasting, which are not accounted for in the adjusted trial balance but rather in financial planning and analysis stages.