The Final Step in the Accounting Cycle Is to Prepare

question 137

Multiple Choice

The final step in the accounting cycle is to prepare

• A) closing entries.
• B) financial statements.
• C) a post-closing trial balance.
• D) adjusting entries.

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Definitions:

Raw Lumber

Unprocessed wood used as a base material in construction and manufacturing, typically sold in bulk or by the board foot.

Materials Cost Per Unit

The total cost of materials required to produce a single unit of product, including direct and sometimes indirect materials.

Equivalent Unit

A measure used in cost accounting to express the amount of work done by incomplete units in terms of fully completed units.

First-In, First-Out

An inventory valuation method where the first items acquired are the first ones sold, used primarily for cost accounting purposes.