Which of the Following Statements Regarding a Post-Closing Trial Balance

question 46

Multiple Choice

Which of the following statements regarding a post-closing trial balance is not true?

• A)Post-closing trial balances only contain permanent accounts.
• B)Balances in a post-closing trial balance cannot be used to calculate current income.
• C)Post-closing trial balances only contain temporary accounts.
• D)A post-closing trial balance verifies that the total of the debit balances equals the total of the credit balances of all accounts in the general ledger.

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Definitions:

Obligation To Buy

A commitment or requirement to purchase a specified asset at a predetermined price, typically within a certain timeframe.

Underlying Stock Price

The current market price of the stock on which a derivative contract, such as an option, is based.

Call Option

A financial contract that gives the holder the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a specific time frame.

Time To Expiration

The duration remaining until the expiry of a contract, particularly relevant for options and other derivatives.