Question 1 [1 mark]

Consider the following statements:

Statement I. Standard adjusting entries involve the Cash account.

Statement II.

After closing entries are posted, the balance in the Expense

and Revenue accounts should not be zero.

Statement III. Closing entries are prepared before

the

adjusted trial balance because the adjusted trial balance uses only permanent

accounts.

Statement IV.

The main purpose of the post-closing trial balance is

to verify that all adjusting entries have been posted to the ledger.

Choose the most correct answer: