Question

question 4 (2 points)
which of these statements are true about the post - closing trial balance? (select all that apply)
it includes only permanent accounts
it is used to very the equality of debits and credits
it is prepared after closing entries are made
it shows the balance of all accounts

Explanation:

1. "It includes only permanent accounts": Temporary accounts (like revenues, expenses, dividends) are closed at the end of the accounting period, so post - closing trial balance has only permanent (asset, liability, equity) accounts. This is true.
2. "It is used to verify the equality of debits and credits": Similar to other trial balances, the post - closing trial balance checks if total debits equal total credits for the permanent accounts. This is true (note: "very" is likely a typo for "verify").
3. "It is prepared after closing entries are made": Closing entries are done to close temporary accounts, and then the post - closing trial balance is prepared to check the balances of permanent accounts. So this is true.
4. "It shows the balance of all accounts": It only shows the balance of permanent accounts, as temporary accounts have a zero balance after closing entries. So this is false.

Answer:

A. It includes only permanent accounts
B. It is used to verify the equality of debits and credits
C. It is prepared after closing entries are made