Accounting Fundamentals Certification (AFC) Practice Test

What does a post-trial balance verify in the general ledger after closing entries are posted?

1. Completeness of entries

2. The accuracy of calculations

3. Equality of debits and credits

4. Correctness of account classifications

The correct answer is: Equality of debits and credits

A post-trial balance serves a critical purpose in the accounting cycle, especially after closing entries have been posted. It primarily verifies the equality of debits and credits in the general ledger. This balancing act is foundational to the double-entry accounting system, where each financial transaction is recorded in such a way that the total debits equal the total credits. When a post-trial balance is prepared, it ensures that all entries have been recorded correctly, and it allows accountants to detect any errors that may have occurred during the closing process. If the debits do not equal the credits, it indicates that there may be mistakes in the journal entries, such as incorrect amounts or missing entries. This check is an essential step in confirming that the books are accurate and ready for the next accounting period. While completeness of entries, accuracy of calculations, and correctness of account classifications are important aspects of accounting, the primary function of a post-trial balance is to confirm that total debits and total credits are equal, thereby ensuring that the accounting records are balanced and accurate before moving forward.