Temporary accounts—specifically revenues, expenses, and dividends/drawings—are not listed in a post-closing trial balance. These nominal accounts are closed to Retained Earnings (or capital) at the end of the accounting period, resulting in a zero balance.
Revenue, expense, and dividend accounts do not appear on the post-closing trial balance because they have been closed to retained earnings.
Answer and Explanation: The post-closing trial balance will not show the expenses and revenue accounts as they are closed by transferring the values to the income summary account, further which is transferred to retained earnings which is part of capital.
Temporary accounts (revenues, expenses, and dividends) are closed and do not appear in the post-closing trial balance.
It is the third (and last) trial balance prepared in the accounting cycle. Since temporary accounts are already closed at this point, the post-closing trial balance will not include income, expense, and withdrawal accounts. It will only include balance sheet accounts, a.k.a. real or permanent accounts.
Key components of a post-closing trial balance
Only permanent accounts are included in the trial balance, including assets, liabilities, and equity, such as: Cash.
Step 3: Prepare the post-closing trial balance
These include all asset accounts, such as cash, accounts receivable, and equipment; liability accounts, like accounts payable and loans; and equity accounts, such as retained earnings and owner's capital.
Conclude that the account NOT listed in a post-closing trial balance is 'Service Revenue' because it is a temporary account that has been closed.
In a post-closing trial balance, all the real accounts are shown. Temporary accounts are no longer seen because their balances are already transferred to Retained earnings. Thus, Salaries expense is not included in a post-closing trial balance because it is a temporary account. The correct answer is C.
Service Revenue is a temporary account being a revenue. Therefore, it will not appear in the post-closing trial balance.
Dividends does not appear in the post-closing trial balance. Thus, choice D is the correct answer.
Additionally, nominal accounts do not appear in trial balance and are considered a special type of temporary accounts that deal with all financial transactions during the accounting period and close at its end.
Fees Earned: This account represents revenue earned by the business. Since it is a temporary account related to income, it is closed at the end of the accounting period and does not appear on the post-closing trial balance.
Permanent accounts, also known as real accounts, do not require closing entries. These include asset, liability, and equity accounts. Examples are cash, accounts receivable, accounts payable, and retained earnings. These accounts carry their ending balances into the next accounting period and are not reset to zero.
Answer and Explanation:
The post-closing trial balance includes the permanent account balances, termed as equity, liability, and asset. Other account balances such as revenue, expenses, and other balances would become zero at the end of the period.
Format of a Post-Closing Trial Balance
Like an unadjusted or an adjusted trial balance, it will have accounts listed in order of either their account numbers or in the order they appear on the balance sheet. The order that will follow will be assets first, then liabilities and finally ending off with equity.
Only permanent accounts—assets, liabilities, and equity—are included in the post-closing trial balance. Which accounts are excluded from the post-closing trial balance? Temporary accounts such as revenues, expenses, and dividends are excluded because their balances have been closed to retained earnings.
Dividends. Dividends are closed to Retained Earnings, so it would not appear on the post-closing trial balance.
Answer to Question No. 19 Option D i.e. Dividend. Revenue and Expenses don't have any balance after Closing Entries. Dividend is an expense account.
It is called the post-closing trial balance. Since all of the temporary accounts now have zero balances as a result of the closing process, only permanent accounts (asset, liability, and equity account balances other than dividends) should appear on the post-closing trial balance.
Answer and Explanation:
The income statement items are not reported in the post-closing trial balance as their balance is zeroed out. Also, the post-closing trial balance is the last step in the accounting cycle. Income tax expense is the only item that won't appear in the after-closing trial balance.
What is a Trial Balance? A trial balance is a report that lists the balances of all general ledger accounts of a company at a certain point in time. The accounts reflected on a trial balance are related to all major accounting items, including assets, liabilities, equity, revenues, expenses, gains, and losses.
Revenue, expense, and dividend accounts do not appear on the post-closing trial balance because they have been closed to retained earnings.
The post-closing trial balance contains only balance sheet accounts, as all temporary accounts (revenue, expenses, and dividends) have been closed to the retained earnings account.
The post-closing trial balance is prepared after closing entries are made. It only includes real accounts which are assets, liabilities, and equity accounts. Revenue accounts, expense accounts, and dividends account are already closed to retained earnings. Based on the choices, only choice a contains all real accounts.