Which of the Following Is Done First at the End

question 91

Multiple Choice

Which of the following is done first at the end of each accounting period?

• A)Prepare adjusting journal entries.
• B)Prepare a post closing trial balance.
• C)Prepare closing journal entries.
• D)Prepare the statement of retained earnings.

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Definitions:

Real GDP

An inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year.

Nominal GDP

The gross domestic product measured at current market prices, without adjustment for inflation.

GDP Deflator

An index that measures the change in prices of all new, domestically produced, final goods and services in an economy over a period of time.

Inflation Rate

The magnitude of price escalation for goods and services across the board, causing a drop in consumer purchasing prowess.