The major purpose of a post-closing trial balance is to:
A) confirm that the adjusting entries are correct.
B) determine if any adjusting entries have been omitted.
C) test for equality of debits and credits in the general ledger to ensure the opening position is correct for the next period.
D) make sure that all post-closing account balances are equal to the pre-closing account balances.

Question

Quizplus · Accepted Answer

The major purpose of a post-closing trial balance is to ensure that the general ledger's debits and credits balance after all closing entries have been made. This confirms the company's opening position for the next period. Option A and B are incorrect as adjusting entries are made before the closing entries, and their accuracy is confirmed through a trial balance before the closing entries are made. Option D is also incorrect as post-closing balances are not relevant for the next period, and the focus is on ensuring the balances before the closing entries are correct.

The Major Purpose of a Post-Closing Trial Balance Is To