Once a trial balance has been prepared, the next step of the accounting cycle involves
A) posting the information to the correct ledger accounts.
B) completing a balance sheet and ratio analysis.
C) preparing financial statements such as the balance sheet, income statement, and statement of cash flows.
D) classifying the transactions into logical categories.

Question

Quizplus · Accepted Answer

After preparing a trial balance, the next step in the accounting cycle is to prepare financial statements, which include the balance sheet, income statement, and statement of cash flows. These documents summarize the financial activities and condition of a business for a specific period.

Once a Trial Balance Has Been Prepared, the Next Step