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

question 48

Multiple Choice

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

• A) confirm that the adjusting entries are correct.
• B) determine if any adjusting entries have been omitted.
• C) test for equality of debits and credits in the general ledger to ensure the opening position is correct for the next period.
• D) make sure that all post-closing account balances are equal to the pre-closing account balances.

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Definitions:

Government Intervention

Actions taken by a government to affect or interfere in an economy or market, usually in the interest of public welfare or economic stability.

Economic Systems

The organized way in which a country allocates resources and apportions goods and services in the national community.

Efficiency

The ability to achieve a desired output with the minimum amount of input, or to maximize output from a given amount of inputs.

Economic Policy

The strategy or plan implemented by a government to manage its economic activities, including taxation, spending, and interest rates, aiming to achieve macroeconomic objectives like growth, employment, and price stability.