The Accounting Cycle Requires Three Trial Balances Be Done

question 147

Multiple Choice

The accounting cycle requires three trial balances be done. In what order should they be prepared?

• A) post-closing, unadjusted, adjusted
• B) unadjusted, post-closing, adjusted
• C) unadjusted, adjusted, post-closing
• D) post-closing, adjusted, unadjusted

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Definitions:

Inflation

The increment in the overall cost metrics for goods and services, diluting the currency's purchasing strength.

NDP

Net Domestic Product, an economic indicator measuring the total value of all goods and services produced within a country in a year, minus depreciation.

National Income

The total monetary value of all goods and services produced by a country's economy over a specific time period, excluding income earned abroad.

GDP

Gross Domestic Product, abbreviated as GDP, embodies the total market and monetary worth of all products and services that are finalized within a country's borders throughout a defined period.