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:

Producer Surplus

The mismatch between the price point producers are prepared to accept for a good or service and the actual price they end up receiving.

Monopolist

An individual or firm that is the sole provider of a good or service, possessing significant market power over prices and output.

AC

Average Cost, also referred to as the cost per unit of output, often used interchangeably with Average Total Cost.

Deadweight Loss

The reduction in economic performance that is seen when a good or service fails to achieve the equilibrium in a free market.