Which of the following statements regarding a post-closing trial balance is false?
A) Post-closing trial balances only contain permanent accounts.
B) Balances in a post-closing trial balance cannot be used to calculate current income.
C) Post-closing trial balances only contain temporary accounts.
D) A post-closing trial balance verifies that the total of the debit balances equals the total of the credit balances of all permanent accounts in the general ledger.

Question

Quizplus · Accepted Answer

A post-closing trial balance contains only permanent accounts, not temporary accounts. Temporary accounts (revenues, expenses, dividends) are closed to the retained earnings account at the end of the accounting period, and therefore, do not appear in the post-closing trial balance.

Which of the Following Statements Regarding a Post-Closing Trial Balance