A Post-Closing Trial Balance Will Show

question 210

Multiple Choice

A post-closing trial balance will show

• A) zero balances for all accounts.
• B) zero balances for statement of financial position accounts.
• C) only statement of financial position accounts.
• D) only income statement accounts.

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Definitions:

Markup

The amount added to the cost of goods to cover overhead and profit when determining the selling price.

Sunk Cost

A sunk cost refers to money that has already been spent and cannot be recovered, often considered when making financial decisions about future investments.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired.

Condensed Income Statement

A simplified version of an income statement that presents only the essential details, summarizing revenue, expenses, and net income.