Other adjustments such as posting depreciation and prepayments are also done at this time. This results in a listing called the adjusted trial balance. It is the accounts in this list, and their corresponding debit or credit balances, that are used to prepare the financial statements.
In addition to other adjustments, like depreciation and prepayments, are made during this period. These adjustments lead to the creation of an "adjusted trial balance," which lists all the accounts and their respective debit or credit balances. This list is then used to create the financial statements.