Which of these is not a purpose of a post-closing trial balance?
A) Determining how much profit the entity has made.
B) Testing for the equality of debits and credits in the general ledger.
C) Making sure the ledger is correct as the starting point for the next financial period.
D) Checking that all the revenue and expense accounts have been closed-off.

Question

Quizplus · Accepted Answer

The purpose of a post-closing trial balance is not to determine how much profit the entity has made. Its primary purpose is to ensure that all temporary accounts have been closed-off correctly and to provide a starting point for the next financial period.

Which of These Is Not a Purpose of a Post-Closing