The accounting cycle begins with
A) preparing financial statements and other reports
B) analysis of economic events and recording their effects
C) posting to the ledger
D) presentation of financial information to decision makers
E) None of these

Question

Quizplus · Accepted Answer

The accounting cycle begins with analyzing economic events and recording their effects. This includes identifying and measuring transactions, entering them into the accounting system, and creating journal entries. This step is followed by posting to the ledger, preparing an unadjusted trial balance, making adjusting entries, preparing an adjusted trial balance, preparing financial statements, closing entries, and finally, preparing a post-closing trial balance.

The Accounting Cycle Begins with