The Post-Closing Trial Balance Differs from the Adjusted Trial Balance

question 126

Multiple Choice

The post-closing trial balance differs from the adjusted trial balance in that it does not

• A) take into account closing entries
• B) take into account adjusting entries
• C) include balance sheet accounts
• D) include income statement accounts

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Definitions:

Fixed Asset

A long-term tangible piece of property or equipment that a company uses in generating income and is not expected to be consumed or converted into cash within a year.

Current Asset

A current asset is any asset likely to be converted into cash within a year during the normal course of a business.

Units-Of-Output Method

A depreciation method where the expense is based on the number of units produced or the machine's hours used, reflecting actual usage.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the loss in value over time.