What Are Educated Assumptions About Future Trends and Events Called

question 110

Multiple Choice

What are educated assumptions about future trends and events called?

• A) Wild guesses
• B) Forecasts
• C) Facts
• D) Statistics
• E) Premonitions

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Definitions:

Accounting Cycle

The series of steps followed by an organization to record and analyze financial transactions, culminating in financial statements.

Post-closing Trial Balance

A financial report created after all adjusting and closing entries are made, showing account balances ready for the next accounting period.

Closing Entries

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

Correcting Entry

A journal entry made in the accounting records to amend an error or oversight in previously recorded transactions.