In the Accounting Cycle, the Last Step Is

question 9

Multiple Choice

In the accounting cycle, the last step is

• A) preparing the financial statements
• B) journalizing and posting the adjusting entries
• C) preparing a post-closing trial balance
• D) journalizing and posting the closing entries

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Definitions:

FICA Taxes

Taxes collected in the United States under the Federal Insurance Contributions Act for both Social Security and Medicare funds.

Estimated Liability

A financial obligation that is recognized on the books before the exact amount is known, typically used for anticipated expenses or losses.

Long-term Liability

Financial obligations of a company that are due beyond one year, such as bonds payable, long-term loans, and lease obligations.

Wage Bracket Withholding Table

A reference table used by employers to determine the amount of tax to withhold from an employee's paycheck based on their earnings and filing status.