Once a Trial Balance Has Been Prepared,the Next Step of the Accounting

question 352

Multiple Choice

Once a trial balance has been prepared,the next step of the accounting cycle involves:

• A)Posting the information to the correct ledger accounts.
• B)Completing a balance sheet and ratio analysis.
• C)Preparing financial statements such as the balance sheet,income statement,and statement of cash flows.
• D)Classifying the transactions into logical categories.

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Definitions:

Cost Reconciliation Report

A report used to reconcile the costs between starting and ending inventory levels with the costs of goods manufactured and sold.

Work in Process Inventory

Items that are in the process of being manufactured but are not yet complete.

Weighted-Average Method

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the weighted average cost of all items available for sale.

Equivalent Units

A technique in process costing that equates partially finished goods to a specific number of fully completed goods.