During the Performance of the Steps in the Accounting Cycle,the

question 63

Essay

During the performance of the steps in the accounting cycle,the trial balance and the adjusted trial balance are prepared at two key points.Using specific names where applicable,discuss the time of preparation and the purpose served by each of these trial balances.

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Definitions:

Operating Cash Flow

The amount of cash generated by a company’s normal business operations.

Depreciation Expense

Allocating the investment in a tangible asset over the time it is functional.

Net Working Capital

An indicator of a firm's immediate financial wellness and liquid assets, determined by subtracting current liabilities from current assets.

Net Working Capital

The financial metric indicating the liquidity position of a firm by subtracting its current liabilities from its current assets.