The steps in the accounting cycle do not need to be followed in the order stated. Monthly financial statements can be prepared with a good amount of accuracy, prior to posting in the ledger or preparing the trail balance.

Question

Quizplus · Accepted Answer

Financial statements rely on the accurate posting in the ledger, and the checks provided by the trial balance. Financial statements cannot be verified for accuracy if the proper entries are not transferred to the ledger, and into the appropriate accounts.

The Steps in the Accounting Cycle Do Not Need to Be