The Purpose of the Post-Closing Trial Balance Is to

question 34

Multiple Choice

The purpose of the post-closing trial balance is to

• A)prove that no mistakes were made.
• B)prove the equality of the permanent account balances that are carried forward into the next accounting period.
• C)prove the equality of the temporary account balances that are carried forward into the next accounting period.
• D)list all the statement of financial position accounts in alphabetical order for easy reference.

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Definitions:

Securities Laws

Regulations and laws that govern the sale, purchase, and issuance of securities, aimed at protecting investors and ensuring fair and efficient markets.

1933 Act

The Securities Act of 1933, a U.S. law aimed at ensuring more transparency in financial statements so investors can make informed decisions about securities investments.

Regulatory Components

Elements or aspects of laws, regulations, or guidelines that impact how businesses and individuals must conduct themselves.

Registration Provisions

Legal requirements for the recording or listing of an item, transaction, or entity with a designated authority to make it legally recognizable and/or to regulate it.