Profit is adjusted to owners capital accounts only after: a. The fiscal year-end financial statements have been

Question:

Profit is adjusted to owner’s capital accounts only after:

a. The fiscal year-end financial statements have been audited

b. The financial statements have been prepared and the closing process has begun

c. The closing process has been completed and the balance sheet has been prepared

d. The total revenue for the accounting period exceeds the total cost of goods sold

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

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