The Final Step in the Accounting Cycle Is to Prepare

question 57

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.

---

Definitions:

Increasing-Cost Industry

An industry in which the costs of production increase as the output expands, usually due to factors like shortages of resources or increased prices of inputs.

Increasing Returns

A situation in economics where an increase in the scale of production leads to a greater than proportional increase in output, often resulting in economies of scale.

Fixed Factor Prices

A condition where the prices of inputs used in production, such as labor or raw materials, remain constant regardless of the output level.

Long-Run Supply Curve

A curve showing the relationship between price and quantity supplied over time, assuming all factors of production can be varied.