The post-closing trial balance is used to determine if the ledger is in balance after closing.

Question

Quizplus · Accepted Answer

The post-closing trial balance is prepared after the closing entries are made to ensure that all temporary accounts have been closed and the permanent accounts (such as assets, liabilities, and equity) have accurate balances. If the post-closing trial balance shows a balance in the retained earnings account, it indicates that the closing entries were done correctly and that the ledger is in balance. Therefore, the statement "The post-closing trial balance is used to determine if the ledger is in balance after closing" is true.

The Post-Closing Trial Balance Is Used to Determine If the Ledger