Question

A post-closing trial balance is prepared

a)before financial statements are prepared.
b)after the closing process.
c)before making adjusting entries.
d)after posting a journal entry.

Answer 1

A post-closing trial balance is prepared after the closing process to ensure debits equal credits and that all temporary accounts have been closed properly. It is the last step before a new accounting period begins.

Step-by-step explanation:

A post-closing trial balance is prepared after the closing process. This step occurs once all the temporary accounts, such as revenues, expenses, dividends (or withdrawals), have had their balances zeroed out (closed) to the capital account. The purpose of the post-closing trial balance is to ensure that debits equal credits after the closing process and to verify that all temporary accounts have been closed properly. It is a final check before the start of a new accounting period.