Question

What does the post-closing trial balance give you the opportunity to do?

a) Calculate net income
b) Prepare financial statements
c) Record adjusting entries
d) Close temporary accounts

Answer 1

The post-closing trial balance allows you to close temporary accounts.

Step-by-step explanation:

The post-closing trial balance gives you the opportunity to d) Close temporary accounts.

After preparing financial statements, the temporary accounts, such as revenue and expense accounts, are closed by transferring their balances to the retained earnings account. This process ensures that the next accounting period starts with zero balances in temporary accounts. The post-closing trial balance confirms that only permanent accounts, such as assets, liabilities, and equity accounts, are open and have correct balances.