A post-closing trial balance:

Question

Quizplus · Accepted Answer

A post-closing trial balance is prepared after closing entries have been made, which transfers the balances of temporary accounts to the permanent accounts. Therefore, the balances of all temporary accounts, including revenue, expenses, and dividends, should be zero, and the balances of all permanent accounts, such as assets, liabilities, and owners' equity, should reflect their final balances after the closing process. Option A is incorrect because adjusting entries are made before closing entries, so a trial balance taken after adjusting entries is not the same as the post-closing trial balance. Option B is incorrect because it refers to an unadjusted trial balance taken before any adjusting entries have been made. Option D is incorrect because a post-closing trial balance is not adjusted for cash-basis accounting, as the closing entries are made regardless of the accounting method used.

A Post-Closing Trial Balance