Final answer:
The statement is true, as unadjusted trial balances and other financial data are essential for planning and recording adjusting entries to ensure accurate financial reporting.
Step-by-step explanation:
The statement that unadjusted trial balances and other financial data are used to plan and record adjusting entries is True. Adjusting entries is necessary at the end of an accounting period to ensure that revenue and expenses are reported in the correct period. They are based on the matching principle of accounting, which states that expenses should be matched with the revenues they help to generate.
An unadjusted trial balance is used as a starting point, showing the balances of all accounts before adjustments. From there, accountants can identify any revenues that have been earned but not yet recorded, or expenses that have been incurred but not yet recorded. The additional financial data can provide the supporting information necessary to make accurate adjustments. For example, a prepaid expense account may need to be adjusted as the expense is incurred, or revenue received in advance may need to be deferred until it is earned.