What is the proper sequencing of documents in an accounting cycle?
A) Source documents, journal, ledger, worksheet, financial statements
B) Source documents, ledger, journal, worksheet, financial statements
C) Worksheet, source documents, journal, financial statements, ledger
D) Source documents, worksheet, journal, ledger, financial statements

Question

Quizplus · Accepted Answer

The correct sequence starts with source documents, which are the initial records of transactions. These are then recorded in the journal as the second step. The third step involves posting these journal entries into the ledger. Afterward, a worksheet is prepared to adjust and close entries before finally preparing the financial statements.

What Is the Proper Sequencing of Documents in an Accounting