A Post-Closing Trial Balance Should Be Prepared

question 236

Multiple Choice

A post-closing trial balance should be prepared

• A) before closing entries are posted to the ledger accounts.
• B) after closing entries are posted to the ledger accounts.
• C) before adjusting entries are posted to the ledger accounts.
• D) only if an error in the accounts is detected.

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Definitions:

Substitutes

Goods or services that can replace each other in use, where an increase in the price of one leads to an increase in demand for the other.

Inferior Good

A type of good for which demand decreases as the income of consumers increases.

Demand Curve

A diagram that shows how the quantity of a product demanded by buyers changes according to its price.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that consumers are willing to purchase at various prices.