Only balance sheet accounts will have balances in the post-closing trial balance.

Question

Quizplus · Accepted Answer

Only balance sheet accounts are permanent accounts and their balances are carried forward to the next accounting period. Therefore, only balance sheet accounts will have balances in the post-closing trial balance. Income statement accounts are temporary accounts and their balances are closed out and transferred to Retained Earnings at the end of the accounting period.

Only Balance Sheet Accounts Will Have Balances in the Post-Closing