4. Which of the following is true about a trial balance? A. It lists the balances of accounts B. It lists the balances of a balance sheet C. It is a kind of financial statement D. It is not a part of the accounting cycle
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Step 1: A trial balance lists the balances of accounts. Show more…
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Once a trial balance has been prepared, the next step of the accounting cycle involves: a. Classifying the transactions into logical categories. b. Preparing financial statements such as the balance sheet, income statement, and statement of cash flows. c. Completing a balance sheet and ratio analysis. d. Posting the information to the correct ledger accounts.
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