Multiple Choice
Which of the following account categories are included in a post-closing trial balance?
25
views
3. Accrual Accounting Concepts
Post-Closing Trial Balance
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
A trial balance prepared after all closing entries have been posted is called a(n):
A
Pre-closing trial balance
B
Post-closing trial balance
C
Unadjusted trial balance
D
Adjusted trial balance
Verified step by step guidance1
Understand the purpose of a trial balance: A trial balance is a list of all ledger accounts and their balances at a specific point in time. It is used to ensure that total debits equal total credits in the accounting system.
Learn about the types of trial balances: There are several types of trial balances, including the unadjusted trial balance, adjusted trial balance, and post-closing trial balance. Each serves a different purpose in the accounting cycle.
Focus on the post-closing trial balance: This type of trial balance is prepared after all closing entries have been posted. Closing entries are used to transfer temporary account balances (e.g., revenues, expenses, and dividends) to permanent accounts (e.g., retained earnings).
Understand the role of the post-closing trial balance: The post-closing trial balance ensures that all temporary accounts have been closed and only permanent accounts remain. It is used to verify the accuracy of the ledger after the closing process.
Identify the correct answer: Based on the explanation, the trial balance prepared after all closing entries have been posted is called a post-closing trial balance.
2:33mWatch next
Master Post-Closing Trial Balance with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Post-Closing Trial Balance practice set
Problem sets built by lead tutorsExpert video explanations