Once a Trial Balance Has Been Prepared,the Next Step of the Accounting

question 202

Multiple Choice

Once a trial balance has been prepared,the next step of the accounting cycle involves:

• A)completing ratio analysis.
• B)posting the information to the correct ledger accounts.
• C)preparing major financial statements such as the balance sheet.
• D)classifying the transactions into logical categories.

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Definitions:

Contract Law

The area of law that deals with the creation and enforcement of agreements between parties, outlining the legal obligations and duties arising from agreements.

Agency Relationship

A fiduciary relationship in which one party (agent) acts on behalf of and under the control of another party (principal) in dealing with third parties.

Sales Representative

A person employed to sell products or services for a company, often directly to customers.

Percent Discount

A reduction in price, usually calculated as a certain percentage of the original price.