Which of the following statements is ?
A) Owner's capital must be closed each accounting period.
B) A post-closing trial balance should include only permanent accounts.
C) Information on the work sheet can be used in place of preparing financial statements.
D) By using a work sheet to prepare adjusting entries you need not post these entries to the ledger accounts.
E) Closing entries are only necessary if errors have been made.

Question

Quizplus · Accepted Answer

A post-closing trial balance only includes permanent accounts, as temporary accounts (such as revenue and expense accounts) have already been closed out.

Which of the Following Statements Is