Closing Entries Are Journalized and Posted ________

question 104

Multiple Choice

Closing entries are journalized and posted ________.

• A) throughout the accounting period
• B) before posting the adjusting entries
• C) after preparing the post-closing trial balance
• D) after preparing the financial statements

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, typically out of the company's profits.

Price-earnings Ratio

A valuation metric for a stock, calculated by dividing the current share price by the earnings per share.

Net Income

Net income represents the total earnings of a company after all expenses and taxes have been deducted from total revenue.

Common Stock

Shares of ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.