Which of the Following Is Considered to Be a Key

question 77

Multiple Choice

Which of the following is considered to be a key element to effective debt management?

• A)Know and understand the costs of debt.
• B)Complete a budget: always spend more than you earn.
• C)Take the largest possible loan you can obtain.
• D)Accept credit whenever it is offered.
• E)None of the above

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Definitions:

Adjusted Trial Balance

A list of all accounts and their balances after adjustments are made for accruals, deferrals, and other adjustments, used in the preparation of financial statements.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts.

Permanent Accounts

Accounts that are not closed at the end of the accounting period, hence carry their balances over into the next period; these include asset, liability, and equity accounts.

Temporary Accounts

Accounts that are closed at the end of each accounting period, including revenue, expense, and dividend accounts.