Which of the following is the first step in the accounting cycle?
A)Prepare financial statements.
B)Analyze business transactions from source documents.
C)Prepare and adjusted trial balance.
D)Post the journal entries to the ledger.

Question

Quizplus · Accepted Answer

The first step in the accounting cycle is to analyze business transactions from source documents. This involves reviewing and interpreting receipts, invoices, and other records to determine the financial impact of each transaction on the business's accounts. Only then can the other steps in the accounting cycle be completed, such as posting journal entries to the ledger, preparing an adjusted trial balance, and ultimately creating financial statements.

Which of the Following Is the First Step in the Accounting