A post-closing trial balance will show
A) only permanent account balances.
B) only temporary account balances.
C) zero balances for all accounts.
D) the amount of net income (or loss) for the period.

Question

Quizplus · Accepted Answer

A post-closing trial balance only includes permanent account balances, as temporary accounts are closed out at the end of the accounting period to start fresh for the next period. The purpose of the post-closing trial balance is to verify that all permanent accounts have been properly adjusted and closed out, and that the company's accounting records are in balance. It does not show the amount of net income or loss for the period, as this information is reflected on the income statement, which is a temporary account. The post-closing trial balance should also show zero balances for all temporary accounts, as they have been closed out.

A Post-Closing Trial Balance Will Show