In which order do these steps in the accounting cycle occur?
I Prepare closing entries
II Post to the ledger
III Enter business transactions in the journal
IV Prepare adjusting entries
V Prepare financial statements
A) I, II, III, IV, V
B) III, IV, II, I, V
C) IV, II, I, III, V
D) III, II, IV, V, I

Question

Quizplus · Accepted Answer

The correct order is: Enter business transactions in the journal (III), Post to the ledger (II), Prepare adjusting entries (IV), Prepare financial statements (V), and finally Prepare closing entries (I). This sequence follows the logical flow of accounting processes from recording transactions to closing the books.

In Which Order Do These Steps in the Accounting Cycle