Which of the following statements is true?
A) Journalizing consists of analyzing and recording transactions in T-accounts.
B) Preparing a post-closing trial balance helps to prove the accuracy of the adjusting and closing procedures.
C) The 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) All of these statements are true.

Question

Quizplus · Accepted Answer

Preparing a post-closing trial balance is a necessary step in the accounting cycle to ensure the accuracy of the adjusting and closing procedures. Journalizing involves recording transactions in the journal, not in T-accounts. The information on the work sheet is used to prepare financial statements, but it does not replace preparing the actual statements. Adjusting entries on the work sheet still need to be posted to the ledger accounts. Therefore, statement B is the only true statement.

Which of the Following Statements Is True