The major purpose of a post-closing trial balance is to:

Question

Quizplus · Accepted Answer

The major purpose of a post-closing trial balance is to test for equality of debits and credits in the general ledger to ensure the opening position is correct for the next period. It confirms that all temporary accounts have been closed and their balances have been transferred to the retained earnings account. Option A is incorrect as the worksheet calculations have already been verified before closing the books. Option B is incorrect as all adjusting entries should have been made before preparing the post-closing trial balance. Option D is incorrect as the objective of the post-closing trial balance is not to compare pre and post-closing balances, but to ensure that all accounts have been closed and the opening position is correct.

The Major Purpose of a Post-Closing Trial Balance Is To