Which of the following correctly describes the accounts reported on the post-closing trial balance?
A)They include permanent and temporary accounts with non-zero balances.
B)The ending retained earnings balance includes the current period net income.
C)They include only temporary account balances.
D)They do not include stockholders' equity account balances.

Question

Quizplus · Accepted Answer

The ending retained earnings balance on the post-closing trial balance includes the current period net income because temporary accounts (revenues, expenses, dividends) have been closed to retained earnings, updating it to reflect the net income or loss and dividends of the period.

Which of the Following Correctly Describes the Accounts Reported on the Post-Closing