The Accounting Cycle Requires Three Trial Balances Be Done

question 147

Multiple Choice

The accounting cycle requires three trial balances be done. In what order should they be prepared?

• A) post-closing, unadjusted, adjusted
• B) unadjusted, post-closing, adjusted
• C) unadjusted, adjusted, post-closing
• D) post-closing, adjusted, unadjusted

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Definitions:

Level Of Significance

The probability of rejecting the null hypothesis in a statistical test when it is actually true, often denoted by alpha.

Null Hypothesis

A statistical hypothesis that suggests there is no significant effect or difference between certain data sets or variables.

One-Tail T-Test

A statistical hypothesis test used to determine if there is a significant difference in the means of two groups in one direction.

Level Of Significance

The level of significance, often denoted by alpha, is a threshold set for deciding whether to reject the null hypothesis, typically set at values like 0.05 or 0.01.