After Jocelyn, a Public Accountant, Prepares and Checks the Financial

question 204

Multiple Choice

After Jocelyn, a public accountant, prepares and checks the financial statements for one of her clients, she then

• A) sends the bill to her client because everything is complete.
• B) prepares a trial balance to ensure the statements are accurate.
• C) closes the books and prepares a post-closing balance.
• D) begins the next period of accounting records.
• E) determines whether or not a post-closing trial balance is necessary.

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Definitions:

Accounts Payable

Liabilities representing amounts owed by a company to creditors for purchases of goods or services on credit, typically due within a short period.

Accrue Cost

The process of recording expenses and liabilities as soon as they are incurred, regardless of when cash is exchanged.

Accounting Cycle

The collective process of identifying, analyzing, and recording the accounting events of a company.

Post-closing Trial Balance

A trial balance prepared after closing entries are made, used to check the balance of debits and credits have been maintained throughout the period after all closing entries are completed.