Which of the following depicts the proper sequence of steps in the accounting cycle?
A) Journalize the transactions analyze business transactions prepare a trial balance
B) Prepare a trial balance prepare financial statements prepare adjusting entries
C) Prepare a trial balance prepare adjusting entries prepare financial statements
D) Prepare a trial balance post to ledger accounts post adjusting entries

Question

Quizplus · Accepted Answer

The proper sequence of steps in the accounting cycle is to first prepare a trial balance, then prepare adjusting entries, and finally prepare the financial statements. Option A is incorrect because analyzing business transactions is done before journalizing the transactions. Option B is incorrect because preparing financial statements should come after adjusting entries. Option D is incorrect because posting to ledger accounts should come after preparing adjusting entries.

Which of the Following Depicts the Proper Sequence of Steps