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

Question

Quizplus · Accepted Answer

The purpose of a post-closing trial balance is to test for the equality of debits and credits in the general ledger, make sure the ledger is correct as the starting point for the next financial period, and check that all the revenue and expense accounts have been closed-off. However, the post-closing trial balance does not show how much profit the entity has made. This information is found on the income statement.

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