After closing entries are posted, a post-closing trial balance should show which of the following?

• A. Only revenue and expense accounts.
• B. Only temporary accounts.
• C. Only permanent accounts.
• D. Both permanent and temporary accounts with zero balances for temporary accounts.

Answer: (C)

The main idea is that closing entries reset temporary accounts to zero, leaving only permanent accounts on the post-closing trial balance.

After closing entries are posted, revenue, expense, and dividends (withdrawals) have had their balances transferred to retained earnings, so they start the new period with zero balances. The post-closing trial balance is prepared to confirm the ledger is in balance once those closings are done, and it should include only permanent accounts—assets, liabilities, and equity accounts that carry forward into the next period. Since temporary accounts carry zero balances after closing, they are not listed on the post-closing trial balance.

So the post-closing trial balance shows only permanent accounts.