The Final Step in the Accounting Cycle Is to ________

question 129

Multiple Choice

The final step in the accounting cycle is to ________.

• A) prepare an adjusted trial balance
• B) close temporary accounts
• C) prepare a post-closing trial balance
• D) prepare financial statements

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Definitions:

Financial Institutions

Organizations such as banks, credit unions, and finance companies that provide a range of financial services including loans, deposits, and investments.

Real Assets

Physical or tangible assets that have intrinsic value, such as real estate, commodities, or natural resources.

Financial Intermediaries

Institutions that act as middlemen between savers and borrowers, including banks, credit unions, and insurance companies.

Savers

Individuals or organizations that set aside a portion of their income for future use, often by depositing it into financial accounts that earn interest.