Asked by Alyssa Currie on May 09, 2024
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The purpose of the post-closing trial balance is to
A) prove that no mistakes were made.
B) prove the equality of the balance sheet account balances that are carried forward into the next accounting period.
C) prove the equality of the income statement account balances that are carried forward into the next accounting period.
D) list all the balance sheet accounts in alphabetical order for easy reference.
Post-Closing Trial Balance
A listing of all company account balances after closing entries are made, ensuring the ledger is balanced before starting a new accounting period.
Balance Sheet Account Balances
The values at a specific point in time for assets, liabilities, and equity accounts as represented in a company's balance sheet.
Accounting Period
A specific time frame for which financial information is reported, commonly a year, quarter, or month.
- Describe the preparation and purpose of a post-closing trial balance.
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Learning Objectives
- Describe the preparation and purpose of a post-closing trial balance.
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