After the Worksheet Has Been Completed, the Next Step in the Accounting

question 41

Multiple Choice

After the worksheet has been completed, the next step in the accounting cycle is to

• A) journalize and post the closing entries.
• B) journalize and post the adjusting entries.
• C) prepare the postclosing trial balance.
• D) prepare the financial statements.

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Definitions:

Winding-Up Stage

The process of concluding a company's business activities, settling debts, and distributing remaining assets to shareholders.

Dissolution

The process of dissolving a company or ending a legal entity's existence.

Partnership Terminated

The disbanding of the partnership agreement between the involved parties, leading to the cessation of the partnership business.

Dissolution

The closing down or termination of a legal entity or agreement, such as a corporation or partnership.