A post-closing trial balance should be prepared

Question

Quizplus · Accepted Answer

A post-closing trial balance should be prepared after closing entries are posted to the ledger accounts because it shows the final balances of all permanent accounts after the closing process has been completed. Preparing it before closing entries are posted would not show the effect of those entries on the account balances. It is also not necessary to wait until an error is detected to prepare a post-closing trial balance. It is a routine step in the accounting cycle.

A Post-Closing Trial Balance Should Be Prepared