After the Transactions Have Been Posted,the Next Step in the Accounting

question 23

Multiple Choice

After the transactions have been posted,the next step in the accounting cycle is to

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

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Definitions:

Marginal Tax Rate

The rate of tax applied to your next dollar of income, indicating the percentage of tax applied to your income for each tax bracket in which you qualify.

Salvage Value

The forecasted sale price for an asset at the termination of its usability period.

MACRS Depreciation

Modified Accelerated Cost Recovery System; a method of depreciation used for tax purposes in the United States that allows for faster expense deductions.

Working Capital

The difference between a company’s current assets and current liabilities, used to fund the company's day-to-day operations.