If at the end of a period, a company has $400 in cash, $100 in accounts
receivable, and $100 in accounts payable, the post-closing trial balance will
show _____worth of debits.
A. $200
O B. $400
O C. $600
O D. $500
The post closing balance will show $500 worth of debits.
This is because if a company has $400 in cash, that is considered an asset for the company. Cash is an asset for the business.
Accounts receivable is an asset as well because it is the amount that debtors owes the business. It’s the amount that debtors should give to us the business.
