Which of the following statements is true regarding the post-closing trial balance?
A)The post-closing trial balance will be distributed to investors and other stakeholders along with the financial statements.
B)The post-closing trial balance is a report prepared before the adjustments and the financial statements to prove that debits equal credits.
C)The post-closing trial balance is an internal report prepared as the last step in the accounting cycle.

Question

Quizplus · Accepted Answer

The post-closing trial balance is an internal report prepared as the last step in the accounting cycle. It is prepared after the closing entries are made and serves as a check to ensure that all temporary accounts have been closed and that the accounting equation still balances. It is not distributed to investors or other stakeholders since it is an internal report. Option A is incorrect as the post-closing trial balance is not distributed to investors or stakeholders. Option B is incorrect as the post-closing trial balance is prepared after the adjustments and financial statements have been made.

Which of the Following Statements Is True Regarding the Post-Closing