Which of the Following Is the Usual Last Step in the Accounting

question 199

Multiple Choice

Which of the following is the usual last step in the accounting cycle?

• A)Preparing the adjusted trial balance.
• B)Preparing the financial statements.
• C)Preparing a post-closing trial balance.
• D)Preparing an unadjusted trial balance.

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Definitions:

Days' Sales in Inventory

A financial metric that measures the average number of days it takes for a company to sell its entire inventory during a given period.

Consignee

The individual or entity to whom goods are shipped to be sold on behalf of the owner, retaining no legal ownership until sales occur.

Expense Recognition Principle

An accounting principle that dictates that expenses should be recognized in the period in which they are incurred to generate revenues, matching expenses against revenues in the period in which the revenue was earned.

Specific Identification

A method of inventory valuation that identifies and assigns cost to individual inventory items, suitable for unique or expensive products.