Which of These Is Not a Purpose of a Post-Closing

question 3

Multiple Choice

Which of these is not a purpose of a post-closing trial balance?

• A) Determining how much profit the entity has made.
• B) Testing for the equality of debits and credits in the general ledger.
• C) Making sure the ledger is correct as the starting point for the next financial period.
• D) Checking that all the revenue and expense accounts have been closed-off.

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Definitions:

Income Statement

A financial statement that summarizes revenues, expenses, and profits or losses of a business for a specific period.

Financial Statement

A document that presents a detailed financial status of a company, including balance sheets, income statements, and cash flow statements, at a specific point in time.

Normal Balance

The side (debit or credit) where the balance of an account usually increases.

Account Category

A classification within accounting used to group similar types of accounts, such as assets, liabilities, equity, revenue, and expenses.