After Adjusting Journal Entries Are Prepared and Posted,but Before Closing

question 2

Multiple Choice

After adjusting journal entries are prepared and posted,but before closing journal entries are prepared and posted,the balance in retained earnings is equal to

• A)zero.
• B)the difference between total assets and total liabilities.
• C)the amount that is to be reported in the current year's balance sheet.
• D)the amount that was reported on the previous year's balance sheet.

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Definitions:

Effective Yield

Effective yield is the total yield on an investment, taking into account the effects of compounding interest or reinvestment over a given period.

Maturity Date

The date on which a financial obligation must be repaid in full.

Present Discounted Value

The present worth of a future amount of money or series of cash inflows, discounted at a given rate of return.

Interest Rate

The cost of borrowing money or the payment made for the use of money, typically expressed as a percentage of the principal amount annually.