The Major Purpose of a Post-Closing Trial Balance Is To

question 21

Multiple Choice

The major purpose of a post-closing trial balance is to:

• A)Prepare the accounting reports
• B)Confirm that the ledger is in balance at the start of the new accounting period
• C)Determine if any closing entries have been missed
• D)Determine if any adjusting entries have been missed

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Definitions:

Conservatism

In finance, it refers to a risk-averse approach to investing or managing assets, prioritizing safety and preservation of capital.

Beliefs

The conviction or acceptance that something exists or is true, especially without proof, often informing decision-making processes in various contexts, including investing.

Stock's Future Performance

Projections or estimates about how a stock will perform in the future based on various indicators and analysis.

Put/Call Ratio

A technical indicator that shows the trading volume of put options compared to call options, often used to gauge market sentiment.