What Is the Purpose of the Post-Closing Trial Balance

question 76

Multiple Choice

What is the purpose of the post-closing trial balance?

• A) to prove no errors were made while recording entries in the journal
• B) to prove the equality of the debit and credit balances in the general ledger accounts
• C) to prove the closing entries were recorded correctly in the journal
• D) to prove the balances in the general ledger accounts are correct

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Definitions:

Funded Status

The financial metric used to evaluate the financial health of a pension plan, indicating the difference between the plan assets and liabilities.

Defined Benefit Plan

A type of pension plan where the employer guarantees a specified pension payment in retirement, based on factors like salary history and duration of employment.

Defined Contribution Plan

A type of retirement plan in which the employer, employee, or both make contributions on a regular basis, but the future payout is not defined.

Pension Expense

The cost recognized by an employer for contributions to a defined benefit pension plan based on formulas that factor in salary, years of service, and other elements.