A post-closing trial balance provides:
A) the starting point for the preparation of the financial reports.
B) a list of out-of-balance accounts.
C) a summary of the adjusting entries yet to be recorded.
D) confirmation that the ledger is in balance at the start of the new accounting period.

Question

Quizplus · Accepted Answer

A post-closing trial balance confirms that all temporary accounts have been closed, leaving only permanent accounts open. It is used to ensure that the ledger is in balance at the beginning of the new accounting period, as all temporary accounts have been closed out. It does not provide a list of out-of-balance accounts or a summary of adjusting entries yet to be recorded, and it is not the starting point for the preparation of financial reports.

A Post-Closing Trial Balance Provides