Palmer Company is at the end of its annual accounting period.The accountant has journalized and posted all external transactions and all adjusting entries,had prepared an adjusted trial balance,and completed the financial statements.The next step in the accounting cycle is:
A)Prepare a work sheet.
B)Prepare reversing entries.
C)Close temporary accounts.
D)Prepare a post-closing trial balance.
E)Prepare an unadjusted trial balance.

Question

Quizplus · Accepted Answer

The next step in the accounting cycle after preparing financial statements is to close temporary accounts to transfer their balances to permanent accounts and reset them for the next accounting period.

Palmer Company Is at the End of Its Annual Accounting