Question

A post-closing trial balance is prepared a. after closing entries have been journalized and posted. b. before closing entries have been journalized and posted. c. after closing entries have been journalized but before the entries are posted. d. before closing entries have been journalized but after the entries are posted.

Answer 1

Answer:

c. after closing entries have been journalized but before the entries are posted.

Explanation:

The post-closing trial or trial balance is a relationship between the G / L accounts and the balances made at the end of the period, after journaling and then moving the closing entries to the G / L. It is the last instance in the accounting cycle, it is performed at a later stage when the closing of the nominal accounts is carried out, its main function is to certify that the largest is balanced at the beginning of the next accounting period.

Answer 2

Answer:

A.

Explanation:

The accounting cycle is the name given to the collective process of recording and processing the accounting events of a company. The series of steps begin when a transaction occurs and end with its inclusion in the financial statements.

Upon the posting of adjusting entries, a company prepares an adjusted trail balance followed by the financial statements. An entity closes temporary accounts (revenues and expenses) at the end of the period using closing entries. These closing entries transfer net income into retained earnings. Finally, a company prepares the post-closing trial balance to ensure debits and credits match.

Steps:

-Journal

-Ledger

-Trail Balance

-Adjustment Entries

-Trading Account

-Profit or loss account

-Final accounts

-Post closing Trail Balance