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Questions and Answers
Which accounts from the adjusted trial balance are included in the post-closing trial balance?
Which accounts from the adjusted trial balance are included in the post-closing trial balance?
- Dividends and Supplies
- Depreciation Expense and Service Revenue
- Accumulated Depreciation, Retained Earnings, Supplies, and Accounts Payable (correct)
- Retained Earnings, Dividends, and Depreciation Expense
What is the primary purpose of the post-closing trial balance?
What is the primary purpose of the post-closing trial balance?
- To provide a summary of all account balances, including both permanent and temporary accounts.
- To verify that all transactions have been properly recorded in the general ledger.
- To present a detailed overview of a company's financial performance over a specific period.
- To ensure all temporary accounts have zero balances before the start of a new accounting period. (correct)
Which types of accounts are typically excluded from the post-closing trial balance?
Which types of accounts are typically excluded from the post-closing trial balance?
- Revenue accounts (correct)
- Equity accounts
- Liability accounts
- Asset accounts
Why are dividends not included in the post-closing trial balance, even though they affect retained earnings?
Why are dividends not included in the post-closing trial balance, even though they affect retained earnings?
If an account like 'Unearned Revenue' appears on the adjusted trial balance, would it also appear on the post-closing trial balance?
If an account like 'Unearned Revenue' appears on the adjusted trial balance, would it also appear on the post-closing trial balance?
Flashcards
Post-Closing Trial Balance
Post-Closing Trial Balance
A list of permanent accounts with non-zero balances after closing entries.
Accumulated Depreciation
Accumulated Depreciation
Total reduction in the value of an asset due to wear and tear, obsolescence, or use.
Depreciation Expense
Depreciation Expense
The cost of an asset's depreciation for a specific period.
Retained Earnings
Retained Earnings
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Accounts Payable
Accounts Payable
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Study Notes
- The task is to identify which accounts from the adjusted trial balance for Verizon would be included in the post-closing trial balance.
Accounts to Include in the Post-Closing Trial Balance:
- Accumulated Depreciation
- Retained Earnings
- Supplies
- Accounts Payable
Accounts NOT to Include in the Post-Closing Trial Balance:
- Depreciation Expense
- Dividends
- Service Revenue
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