Which of the following statements regarding the trial balance is correct?
A)The adjusted trial balance is prepared after the financial statements to verify that the numbers are accurate.
B)The primary purpose of the post-closing trial balance is to see whether revenues are greater than expenses.
C)The adjusted trial balance is a check that the accounting records are still in balance after posting all adjustments to the accounts.
D)The post-closing trial balance debit column total is the amount to be shown as Total Assets on the Balance Sheet.

Question

Quizplus · Accepted Answer

The adjusted trial balance is prepared after all adjusting entries have been made to ensure that the accounting records are still in balance. The post-closing trial balance is prepared after closing entries have been made and its purpose is to ensure that all temporary accounts (revenue, expense, and dividend accounts) have been closed out to retained earnings and that the accounting records are still in balance. Option A is incorrect because the adjusted trial balance is prepared before financial statements are created. Option B is incorrect because the primary purpose of the post-closing trial balance is to ensure that all temporary accounts have been closed out, not to compare revenues to expenses. Option D is incorrect because the post-closing trial balance does not determine the Total Assets on the Balance Sheet, rather it only includes balance sheet accounts.

Which of the Following Statements Regarding the Trial Balance Is