Listed below in random order are the steps in the accounting cycle.

(1) prepare the financial statements
(2) post the journal entries to the ledger
(3) record journal entries
(4) prepare a trial balance

What is the proper order of these steps?
A)(3), (2), (1), (4)
B)(2), (3), (4), (1)
C)(4), (3), (2), (1)
D)(3), (2), (4), (1)

Question

Listed below in random order are the steps in the accounting cycle.

(1)	prepare the financial statements
(2)	post the journal entries to the ledger
(3)	record journal entries
(4)	prepare a trial balance

What is the proper order of these steps?
A)(3), (2), (1), (4)
B)(2), (3), (4), (1)
C)(4), (3), (2), (1)
D)(3), (2), (4), (1)

Quizplus · Accepted Answer

The correct order is to first record transactions as journal entries (3), then post these entries to the ledger accounts (2), prepare a trial balance to ensure debits equal credits (4), and finally prepare the financial statements (1).

Listed Below in Random Order Are the Steps in the Accounting