BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The post-closing trial balance takes into account having closed the books.
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The post-closing trial balance is adjusted to create the adjusted trial balance.
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The post-closing trial balance is an alternate name for the adjusted trial balance.
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The adjusted trial balance is allowed to have disparity between the total number of credits and debits.
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Detailed explanation-1: -Once a book is balanced, an adjusted trial balance can be completed. This trial balance has the final balances in all the accounts, and it is used to prepare the financial statements. The post-closing trial balance shows the balances after the closing entries have been completed.
Detailed explanation-2: -The main difference between a trial balance and a post-closing trial balance is that the post-closing trial balance includes the balances of all accounts in the general ledger, while the trial balance only includes the balances of those accounts that have been adjusted.
Detailed explanation-3: -Closing entries are journalized and posted once per year at year-end after financial statements have been prepared. Trial Balances: The closing process begins with the adjusted trial balance. After the closing entries have been journalized and posted to the ledger, a Post-Closing trial balance is prepared.
Detailed explanation-4: -Adjusted trial balances are a type of trial balance issued after the initial trial balance is prepared. The adjusted trial balance accounts for information that is missing or misrepresented in the general ledger and can correct for errors identified in the initial report.