Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

3. Accrual Accounting Concepts

Post-Closing Trial Balance

Financial Accounting

3. Accrual Accounting Concepts

Post-Closing Trial Balance

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Multiple Choice

Which of the following accounts are listed in a post-closing trial balance?

Service Revenue, Rent Expense, and Dividends

Cash, Accounts Receivable, and Equipment

Sales Revenue, Interest Expense, and Utilities Expense

Income Summary, Retained Earnings (before closing), and Supplies Expense

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Verified step by step guidance

Understand the purpose of a post-closing trial balance: It is prepared after closing entries are made to ensure that debits equal credits and to list only the accounts that remain open (permanent accounts). Temporary accounts (revenues, expenses, and dividends) are closed and do not appear in the post-closing trial balance.

Identify the types of accounts: Permanent accounts include assets (e.g., Cash, Accounts Receivable, Equipment), liabilities, and equity (e.g., Retained Earnings after closing). Temporary accounts include revenues (e.g., Service Revenue, Sales Revenue), expenses (e.g., Rent Expense, Utilities Expense), and dividends, which are closed to Retained Earnings.

Analyze the options provided: Check which accounts are permanent and which are temporary. For example, 'Cash, Accounts Receivable, and Equipment' are permanent accounts, while 'Service Revenue, Rent Expense, and Dividends' are temporary accounts.

Eliminate options with temporary accounts: Since temporary accounts are closed and do not appear in the post-closing trial balance, any option containing accounts like Service Revenue, Rent Expense, Dividends, or Supplies Expense can be excluded.

Select the correct option: The correct answer is the one that lists only permanent accounts, such as 'Cash, Accounts Receivable, and Equipment,' as these remain open and are included in the post-closing trial balance.