Which of the Following Is the Usual Final Step in the Accounting

question 52

Multiple Choice

Which of the following is the usual final step in the accounting cycle?

• A) Journalizing transactions.
• B) Preparing an adjusted trial balance.
• C) Preparing a post-closing trial balance.
• D) Preparing the financial statements.
• E) Preparing a work sheet.

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Definitions:

Future Cash Flows

Projected financial gains or losses for a specific period in the future.

Financial Advisors

Professionals who help individuals manage their finances by providing advice on money issues such as investments, insurance, mortgages, college savings, estate planning, taxes, and retirement.

Collateral

Assets that a borrower offers to a lender as security for a loan, which can be seized if the loan is not repaid according to the agreed upon terms.

Cash Flows

The full extent of money transactions processed by a business, considerably affecting its ability to liquidate assets.