All of the following statements about the post-closing trial balance are correct except it
A) shows that the accounting equation is in balance.
B) provides evidence that the journalizing and posting of closing entries have been properly completed.
C) contains only permanent accounts.
D) proves that all transactions have been recorded.

Question

Quizplus · Accepted Answer

The post-closing trial balance is designed to ensure that debits equal credits after closing entries are made, indicating that the accounting equation is in balance, and to confirm that all temporary accounts have been closed to the permanent accounts (retained earnings). However, it does not prove that all transactions have been recorded; it only shows that the transactions recorded and closed are balanced.

All of the Following Statements About the Post-Closing Trial Balance