A post-closing trial balance is prepared so that:
A) the adjusting entries can be completed.
B) the entity can determine if any adjusting entries have been missed.
C) the equality of debits and credits in the general ledger can be tested to ensure the opening position is correct for the next period.
D) all pre-closing account balances can be confirmed as correct.

Question

Quizplus · Accepted Answer

The post-closing trial balance is prepared after all closing entries have been made and the temporary accounts (revenue, expenses, gains, and losses) have been closed out to retained earnings. The purpose of this trial balance is to test the equality of debits and credits in the general ledger and ensure that the opening balances for the next period are correct. It does not involve adjusting entries or confirming pre-closing account balances.

A Post-Closing Trial Balance Is Prepared So That