Which of the Following Correctly Describes the Accounts Reported on the Post-Closing

question 44

Multiple Choice

Which of the following correctly describes the accounts reported on the post-closing trial balance?

• A)They include permanent and temporary accounts with non-zero balances.
• B)The ending retained earnings balance includes the current period net income.
• C)They include only temporary account balances.
• D)They do not include stockholders' equity account balances.

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Definitions:

Profit

The financial gain that results when the revenues generated from business activities exceed the expenses, taxes, and costs incurred.

Competitive Market

A market structure characterized by many buyers and sellers, where all entities have little to no power to influence prices or market conditions.

Transaction Costs

Transaction costs are expenses incurred when buying or selling goods or services, including the costs of searching for information, negotiations, and enforcement of contracts.

Spread

The difference between two values, such as the bid and ask prices in financial markets, or the range in statistical data.