The Accounting Cycle Comprises Ten Steps

question 22

Multiple Choice

The accounting cycle comprises ten steps.In which step is an XBRL taxonomy first likely to be used?

• A)Post from the journal to the ledger.
• B)Record the transactions in a journal.
• C)Prepare financial statements.
• D)Close the nominal accounts to retained earnings.

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Definitions:

Marginal Cost

Marginal Cost is the increase in cost that arises from the production of one additional unit of a product or service.

Antitrust Laws

Antitrust laws are regulations designed to promote competition and prevent monopolies, ensuring fair practices in the marketplace.

Nash Equilibrium

A concept in game theory where each player's chosen strategy maximizes their payoff given the strategies chosen by other players, and no player can benefit by changing their strategy unilaterally.

Marginal Cost

The cost of producing one additional unit of a product or service.