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:

Standard Cost

A predetermined cost of manufacturing, selling, or any other enterprise activity, which serves as a benchmark for assessing performance.

Equivalent Units

A concept used in cost accounting to indicate the quantity of production expressed in terms of fully completed units.

Cost of Energy

The amount of money that is spent to produce, convert, transmit, and distribute energy.

Factory Overhead Costs

Factory overhead costs encompass all indirect costs associated with manufacturing, excluding direct materials and direct labor.