Question

Question 11 1.5 pts A post-closing trial balance should be prepared before closing entries are posted to the ledger accounts. after closing entries are posted to the ledger accounts. only it an error in the accounts its is detected before adjusting entries are posted to the ledger accounts. Next- Qui saved at 9:29pm Submit Quilt MacBook Pro Q Search or enter website name % + 3 $ 4 5 6 7 8 9 0 0 W E R T Y U S D F G H J K K C V B N. M 36

Answer 1

(Q 1) A post-closing trial balance should be prepared

(Ans) Option : (B) - After closing entries are posted to the ledger accounts

• A post-closing trial balance is prepared after closing entries are made and posted to the ledger. It is prepared after all of the temporary accounts in the general ledger have been closed. It is the last trial balance prepared in the accounting cycle. The purpose of post-closing trial balance is to test the equality between debits and credits after closing entries are prepared and posted.

(Q 2) The closing entry process consists of closing

(Ans) Option : (B) - All temporary accounts.

• The closing entry process consists of closing Temporary Accounts (Revenues, Expenses, Gains & Losses) to Income Summary Account and thereafter at the end of the accounting period, the income summary account is closed to the income statement. Temporary accounts refer to accounts that are closed at the end of every accounting period. These accounts include revenue, expense, and withdrawal accounts.