Primary Data Are Data That Have Already Been Collected for Purposes

question 36

True/False

Primary data are data that have already been collected for purposes other than the problem at hand.

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Definitions:

Post-closing Trial Balance

A financial statement prepared after all adjusting and closing entries are made, ensuring the total debits equal total credits.

Ledger Accounts

Individual financial records within the general ledger, detailing transactions related to a specific account category.

Income Summary

An account in the accounting ledger that is used to summarize the revenues and expenses for a period, facilitating the transfer of net income or loss to retained earnings.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances in temporary accounts to permanent accounts, thereby preparing the company's books for the next period.