The first two steps of the accounting cycle, in proper sequence, are:
A) Record transactions in a journal and prepare a trial balance.
B) Analyze transactions from source documents and post journal entries to general ledger accounts.
C) Analyze transactions from source documents and record transactions in a journal.
D) Record transactions in a journal and post journal entries to general ledger accounts.
E) None of the above

Question

Quizplus · Accepted Answer

The first step in the accounting cycle is analyzing transactions from source documents, such as invoices or receipts. The second step involves recording these transactions in a journal, often referred to as the book of original entry.

The First Two Steps of the Accounting Cycle, in Proper