Which of the following statements is true?
A) A post-closing trial balance should include only permanent accounts.
B) Closing entries are only necessary if errors have been made.
C) By using a work sheet to prepare adjusting entries you need not post these entries to the ledger accounts.
D) Owner's capital must be closed each accounting period.
E) The work sheet can be substituted for preparing financial statements.

Question

Quizplus · Accepted Answer

A post-closing trial balance should include only permanent accounts. Temporary accounts (such as revenue and expenses) are closed out at the end of the accounting period and should not appear on the post-closing trial balance.

Which of the Following Statements Is True