The Last Step Before Preparing Financial Statements Is To

question 94

Multiple Choice

The last step before preparing financial statements is to:

• A)post all entries.
• B)record all transactions in the journal.
• C)prepare the trial balance.
• D)review source documents.

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Definitions:

Ending Inventory

The total value of all unsold goods remaining at the end of an accounting period.

Inventory Turnover Rate

A measure of how often inventory is sold and replaced over a period, indicating the efficiency of inventory management.

Cost Of Goods Sold

The immediate expenses related to the manufacturing of products a company sells.

Ending Inventory

The sum of the value of products ready to be sold at the conclusion of a financial period.