The Purpose of the Post-Closing Trial Balances Is to Prove

question 218

True/False

The purpose of the post-closing trial balances is to prove the equality of the Statement of Financial Position.

---

Definitions:

Expenses

Costs necessary for maintaining the daily operations of a business, contributing to the revenue generation indirectly.

Revenue

The total income earned by a company for selling its goods, services, or other rights to use assets.

Owner Investment

Capital or assets contributed by the owner(s) of a company into the business, increasing the company's equity.

Revenue

The sum of money a business earns from selling products or offering services over a specified time frame.