The Two Optional Steps in the Accounting Cycle Are Preparing

question 33

Multiple Choice

The two optional steps in the accounting cycle are preparing

• A) a post-closing trial balance and reversing entries.
• B) a worksheet and post-closing trial balances.
• C) reversing entries and a worksheet.
• D) an adjusted trial balance and a post-closing trial balance.

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Definitions:

Principal

The original sum of money invested or loaned, before interest.

Agents

Individuals or entities authorized to act on behalf of another, typically in business transactions.

Agency Relationship

A legal relationship in which one party, the agent, is authorized to act on behalf of another, the principal, in business transactions with third parties.

Independent Contractor

An individual or entity contracted to perform work for another entity as a non-employee, retaining control over how the work is completed.