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What is the law of effect?
Financial Statements
Formal records of the financial activities and position of a business, person, or other entity, typically including a balance sheet, income statement, and cash flow statement.
Closing Entries
Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts.
General Ledger
A complete record of all financial activities conducted by a company throughout its existence.
Post-closing Trial Balance
A financial statement listing all accounts and their balances after closing entries are made, ensuring that debits equal credits.
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