Which of the following statements is true?
A)Preparing a post-closing trial balance helps to prove the accuracy of the adjusting and closing procedures.
B)Journalizing consists of analyzing and recording transactions in T-accounts.
C)The information on the work sheet can be used in place of preparing financial statements.
D)By using a work sheet to prepare adjusting entries you need not post these entries to the ledger accounts.
E)All of these statements are true.

Question

Quizplus · Accepted Answer

Preparing a post-closing trial balance is the final step in the accounting cycle that helps to ensure the accuracy of the adjusting and closing procedures. Option B is incorrect as journalizing is the process of recording transactions in a journal, not T-accounts. Option C is incorrect because while the work sheet provides a summary of account balances, financial statements still need to be prepared separately. Option D is incorrect as adjusting entries still need to be posted to the ledger accounts.

Which of the Following Statements Is True