Randomly Listed Below Are the Steps for Preparing a Trial

question 217

Multiple Choice

Randomly listed below are the steps for preparing a trial balance: ​ What is the proper order of these steps?

• A) (3), (2), (4), (1)
• B) (2), (3), (4), (1)
• C) (3), (2), (1), (4)
• D) (4), (3), (2), (1)

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Definitions:

Current Assets

Properties that an organization foresees turning into cash, selling, or expending over the course of a year or its operating cycle, whichever timeframe is more extended.

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell it, and convert the sale into cash through customer payments.

Long-Term Liabilities

Financial obligations of a company that are due beyond one year, including bonds payable, long-term loans, and lease obligations.

Correcting Entries

These are journal entries made to correct errors found in the accounting records.