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

question 61

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:

U.S. Assets

Assets located within the United States that may include real estate, stocks, bonds, and other financial instruments owned by individuals, companies, or the government.

Capital Goods

Long-term assets used in the production of other goods and services, such as machinery, buildings, and equipment, essential for creating consumer goods.

Net Capital Outflow

The net flow of funds invested overseas by a country over a certain period, calculated as the difference between the capital leaving the country and capital entering it.

Foreign Direct Investment

An investment made by a company or individual in one country in business interests in another country, in the form of establishing business operations or acquiring business assets.