Which of the Following Statements Is True of a Post-Closing

question 23

Multiple Choice

Which of the following statements is true of a post-closing trial balance?

• A) Its debits must equal its credits
• B) It lists all real and nominal account balances
• C) It may be prepared before the closing process to provide some assurance that the previous steps in the cycle have been performed properly
• D) All of these are true

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Definitions:

Rights

Entitlements or privileges granted, typically to shareholders, such as the right to buy additional shares in certain circumstances.

Statement Of Financial Position

Another term for a balance sheet, a financial document that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.

Long-Term Investments

Investments intended to be held for longer than a year, including stocks, bonds, or real estate, aimed at generating long-term returns.