After All Transactions Have Been Journalized and Posted to the Accounts

question 22

Multiple Choice

After all transactions have been journalized and posted to the accounts, a trial balance will be prepared. The purpose of this is to

• A) Determine whether there is enough cash to pay dividends
• B) Check that total debits equals total credits
• C) Close the books
• D) Obtain unadjusted balances that can be transferred directly to the financial statements

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Definitions:

Consumption

The act of using goods and services for personal needs or to generate utility.

Utility Function

A mathematical representation of how different combinations of goods or services can result in varying levels of satisfaction or utility to a consumer.

Consumer's Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the benefit consumers receive from the purchase.

Earplugs

Small devices inserted into the ear canal to protect the ears from loud noises, water, or foreign bodies.