Author Question: The purpose of the post-closing trial balance is to make sure the debit balances equal the credit ... (Read 139 times)

09madisonrousseau09 · **on:** Jul 6, 2018

The purpose of the post-closing trial balance is to make sure the debit balances equal the credit balances before the closing process.
a. True
b. False
Indicate whether the statement is true or false

Question 2

What questions should the analyst try to answer when analyzing the trend of a firm's sales number?

What will be an ideal response?

verrinzo · **Reply #1 on:** Jul 6, 2018

Answer to Question 1

False

Answer to Question 2

Questions the analyst should attempt to answer include:
a, Are sales growing because the firm is increasing prices or because more units are being sold, or both?
b, Are sales growing in real (inflation-adjusted) as well as nominal (as reported) terms?