Sheena Is a Private Accountant Who Is Working Through the Accounting

question 248

Multiple Choice

Sheena is a private accountant who is working through the accounting cycle. She has completed transferring entries from the journal to a ledger. Her next step is to

• A) record transactions in a journal.
• B) do a trial balance.
• C) prepare financial statements.
• D) analyze the financial statements using ratio analysis.
• E) transfer entries from the journal to the ledger.

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Definitions:

Terms

Conditions and stipulations outlined in a contract or agreement, specifying the rights and obligations of the parties involved.

Goods

Tangible or physical items that can be bought, sold, or produced.

Timber

Wood that has been processed into beams and planks, a stage in the process of wood production.

Minerals

Natural inorganic substances occurring in the earth that have a definite chemical composition and physical properties.