MANAGEMENT

Detailed explanation-1: -Companies use closing entries to reset the balances of temporary accounts − accounts that show balances over a single accounting period − to zero. By doing so, the company moves these balances into permanent accounts on the balance sheet. These permanent accounts show a company’s long-standing financials.

Detailed explanation-2: -The post-closing trial balance will contain only balance sheet accounts. A Post-closing trial balance is prepared after all the adjusting entries are passed. Basically, it contains all the balances of permanent account i.e., balance sheet.

Detailed explanation-3: -Answer and Explanation: It is b) false that closing entries deal primarily with the balances of permanent accounts. Closing entries focus on the balances of the temporary accounts of revenues and expenses. These are the accounts closed and then reconciled with the equity accounts on the balance sheet.