Once a Trial Balance Has Been Prepared, the Next Step

question 7

Multiple Choice

Once a trial balance has been prepared, the next step of the accounting cycle involves

• A) posting the information to the correct ledger accounts.
• B) completing a balance sheet and ratio analysis.
• C) preparing financial statements such as the balance sheet, income statement, and statement of cash flows.
• D) classifying the transactions into logical categories.

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Definitions:

Behaviourist

A psychologist or researcher who studies behavioral patterns, often focusing on measurable and observable actions rather than mental or emotional states.

Nativist

A perspective in the field of linguistics and cognitive science which suggests that the ability to acquire language is innate to humans and genetically predetermined.

Cognitive

Relating to cognition, which involves processes such as thinking, knowing, remembering, judging, and problem-solving.

Biological Mechanism

The means or process through which functions are carried out within a living organism, often at the cellular or molecular level.