Question

All of the following are true about the post-closing trial balance, except: a.It is prepared after posting the closing entries to prove the equality of the debit and credit balances in the general ledger accounts. b.Only permanent accounts are listed in the post-closing Trial Balance. c.The owner's capital balance listed on the post-closing Trial Balance was updated to reflect revenues, expenses, and drawing for the accounting period. d.It is prepared before the closing process.

Answer 1

Answer:

All of the following are true about the post-closing trial balance, except:

d.It is prepared before the closing process.

Explanation:

The post-closing trial balance is rather prepared after the closing process.  This is the reason it is described as a post-closing trial balance.  Only permanent accounts (balance sheet) are listed on the post-closing trial balance.  The post-closing trial balance ensures that the capital account is updated with the retained earnings (net income less drawings), as the case may be.