Reprocessing of Transactions Helps Establish That All Valid Items Have

question 20

Multiple Choice

Reprocessing of transactions helps establish that all valid items have been recorded.Reprocessing tests which of the following assertions?

• A)Occurrence.
• B)Rights.
• C)Existence.
• D)Completeness.

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Definitions:

Post-closing Trial Balance

A summary of all account balances after closing entries are made, used to check the balance of debits and credits.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries are made, used in the preparation of financial statements.

Closing Entry

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, thereby preparing the books for the next period.

Income or Loss

Income or loss refers to the financial result of a company’s operations over a specific period, indicating profitability or deficit.