Which of the following has steps of the accounting cycle in proper sequence (some steps may be missing)?
A) analyze and record transactions, post transactions to the ledger, prepare a trial balance, prepare financial statements, journalize closing entries, analyze adjustment data and prepare adjusting entries
B) prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger
C) analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger, and prepare a post-closing trial balance
D) prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries

Question

Quizplus · Accepted Answer

The accounting cycle typically starts with analyzing and recording transactions, followed by posting these transactions to the ledger. Next, a trial balance is prepared to ensure that debits equal credits. Adjustment data is then analyzed, and adjusting entries are prepared to correctly reflect the financial position of the organization. Once this is done, financial statements are prepared, closing entries are journalized and posted to the ledger, and a post-closing trial balance is prepared. This sequence of events is best reflected in option C.

Which of the Following Has Steps of the Accounting Cycle