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

Question

Quizplus · Accepted Answer

The purpose of the post-closing trial balance is to prove the equality of the permanent account balances, which include assets, liabilities, and equity accounts, that are carried forward into the next accounting period after the temporary accounts have been closed. This helps to identify any errors or discrepancies in the balances and ensures the accuracy of the financial statements. The post-closing trial balance does not list accounts alphabetically and is not intended to prove that no mistakes were made, as errors could still exist in the permanent accounts.

The Purpose of the Post-Closing Trial Balance Is to