All of the Following Statements About the Post-Closing Trial Balance

question 141

Multiple Choice

All of the following statements about the post-closing trial balance are correct except it

• A)shows that the accounting equation is in balance.
• B)provides evidence that the journalizing and posting of closing entries have been properly completed.
• C)contains only permanent accounts.
• D)proves that all transactions have been recorded.

---

Definitions:

Personal Guarantee

This is a legal promise made by an individual to repay the borrowing of a business entity in case it fails to do so, thus personally ensuring the debt.

Economic Performance

Economic performance refers to the evaluation of how effectively an economy or a specific entity manages its resources and meets its objectives, often measured in terms of productivity, efficiency, and growth.

Informational Needs

The specific data and insights required by individuals or organizations to make informed decisions.

Financial Accounting Standards Board

An independent, private-sector body that establishes and interprets Generally Accepted Accounting Principles (GAAP) in the United States.