The purpose of the post-closing trial balance is to
A) prove that no mistakes were made.
B) prove the equality of the statement of financial position account balances that are carried forward into the next accounting period.
C) prove the equality of the income statement account balances that are carried forward into the next accounting period.
D) list all the statement of financial position accounts in alphabetical order for easy reference.

Question

Quizplus · Accepted Answer

The post-closing trial balance is prepared after closing entries have been made and it aims to prove the equality of the statement of financial position account balances that are carried forward into the next accounting period. This ensures that all temporary accounts have been closed and only permanent accounts remain open, which is necessary for accurate financial reporting. Options A, C, and D are incorrect because they do not accurately describe the purpose of the post-closing trial balance.

The Purpose of the Post-Closing Trial Balance Is to