A Post-Closing Trial Balance Is Prepared

question 172

Multiple Choice

A post-closing trial balance is prepared

• A) after closing entries have been journalized and posted.
• B) before closing entries have been journalized and posted.
• C) after closing entries have been journalized but before the entries are posted.
• D) before closing entries have been journalized but after the entries are posted.

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Definitions:

Interest On Municipal Bonds

The periodic payments made to investors of municipal bonds, often exempt from federal and sometimes state and local taxes.

MACRS Depreciation

Modified Accelerated Cost Recovery System, a method of depreciation for tax purposes in the United States that allows a faster write-off of assets.

Product Warranty Expenses

Product warranty expenses are costs that a company anticipates and records for potential future claims on warranties provided for their products.

Temporary Differences

Differences between taxable income and accounting income, due to items being recognized in different periods for tax and accounting purposes.