Which One of the Following Is the Last Step in the Accounting

question 76

Multiple Choice

Which one of the following is the last step in the accounting cycle?

• A)Journalizing business transactions
• B)Recording and posting adjustments
• C)Closing the accounts
• D)Preparing financial statements

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Definitions:

Estimated Ending Inventory

An approximation of the value or quantity of inventory that a company has on hand at the end of an accounting period, calculated for planning or valuation purposes.

Gross Profit Rate

The percentage of revenue that exceeds the cost of goods sold, indicating how efficiently a company uses its resources to produce goods.

Ending Inventory

The overall worth of items ready for sale at the end of a fiscal period.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from its total revenues.