The Purpose of the After-Closing Trial Balance Is to Give

question 80

True/False

The purpose of the after-closing trial balance is to give assurance that the accounts are in balance and ready for the new accounting period.

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Definitions:

Practical Standards

Standards that allow for normal machine downtime and other work interruptions and that can be attained through reasonable, though highly efficient, efforts by the average worker.

Standard Quantity

This term refers to the amount of input (materials, labor, etc.) that should be used in the production of a unit of goods under normal conditions.

Standard Price

A pre-determined cost allocated to a single unit of product or service, used for budgeting and performance evaluation.

Ideal Standards

Standards that assume peak efficiency at all times.