Question

Companies prepare various types of trial balances. Which trial balance likely lists the smallest number of accounts for a given company?

A. All of these list the same number of accounts.
B. The pre-disclosure trial balance
C. The post-closing trial balance
D. The trial balance prepared before recording adjusting entries
E. The adjusted trial balance

Answer 1

The post-closing trial balance lists the smallest number of accounts since it is prepared after closing entries, which leads to nominal accounts having zero balances and not being listed. Option C is correct.

Step-by-step explanation:

The post-closing trial balance likely lists the smallest number of accounts for a given company. This trial balance is prepared after all closing entries have been made. The purpose of the closing entries is to transfer the balances of all nominal accounts (revenues, expenses, gains, losses, and dividends) to the capital account.

As a result, these accounts will have zero balances and therefore, they are not listed on the post-closing trial balance. In contrast, the pre-disclosure trial balance, the trial balance before recording adjusting entries, and the adjusted trial balance all include these nominal accounts. Based on the options provided, C. The post-closing trial balance is the correct answer.