Solution-What is the purpose of the post-closing trial

What is the purpose of the post-closing trial balance

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Reference no: EM132875115

Question 1: What is the purpose of the post-closing trial balance

Question 2: What's the difference between a current liability and a long-term liability?

According to the text, the driving factor in the difference between the two is the length of time before the liability will be satisfied. Typically, if it's a year or less, it's a current liability, and anything that will take longer than a year is a long-term.

As long-term liabilities get paid-off, and when their resolution date comes to be within a year, it then becomes a current liability. If the long-term liability is something that are renewed every year instead of being paid off, they will continually be considered long-term.

Reference no: EM132875115

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What is the purpose of the post-closing trial balance

Reference no: EM132875115

Reference no: EM132875115

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