The purpose of the post-closing trial balance is to
A) prove the equality of the temporary account balances that are carried forward into the next accounting period.
B) list all the balance sheet accounts in alphabetical order for easy reference.
C) prove the equality of the permanent account balances that are carried forward into the next accounting period.
D) prove that no mistakes were made.

Question

Quizplus · Accepted Answer

The post-closing trial balance is used to verify that the sum of debit balances equals the sum of credit balances in the permanent accounts after closing entries are made. It ensures the ledger is balanced before starting a new accounting period, focusing on permanent accounts (assets, liabilities, and equity) since temporary accounts (revenues, expenses, dividends) have been closed to retained earnings.

The Purpose of the Post-Closing Trial Balance Is to