Principles of Financial Accounting · free preview
The Post-Closing Trial Balance
After closing entries post, the post-closing trial balance verifies that only permanent accounts remain open and that debits still equal credits before the next accounting period begins.
1. One last arithmetic check
One last arithmetic check
2. What the balances mean now
What the balances mean now
3. Errors the post-closing trial balance catches
Errors the post-closing trial balance catches
4. The cycle restarts
The cycle restarts
5. Which accounts appear
Which accounts appear on the post-closing trial balance?
6. What it proves
A post-closing trial balance balances with only permanent accounts listed. What does this confirm?
7. Opening balance of retained earnings
A company's post-closing trial balance shows retained earnings of 2,880 dollars. What is this amount in the next period?
8. A red flag on the report
Which finding on a post-closing trial balance signals a problem?
9. Number of columns
How many amount columns does a trial balance have? Give the number only.
10. Equity account updated by closing
Which single equity account absorbs the net income and dividends during closing? Give the two-word account name.
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