A post-closing trial balance is prepared
A)Immediately after all closing entries have been recorded and posted
B)Immediately before all closing entries have been recorded and posted
C)Immediately before a business ceases to exist
D)Immediately before a business starts operations
E)At different times in the accounting cycle depending on the nature of the business and the complexity of the accounting records

Question

Quizplus · Accepted Answer

A post-closing trial balance is prepared immediately after all closing entries have been recorded and posted to verify that the accounts have been correctly closed and to ensure that the accounting equation (assets = liabilities + equity) remains in balance.

A Post-Closing Trial Balance Is Prepared