Which step in the accounting cycle immediately precedes closing the temporary accounts?
A)Analyze transactions.
B)Prepare an adjusted trial balance.
C)Prepare financial statements.
D)Record adjusting entries.

Question

Quizplus · Accepted Answer

The preparation of financial statements immediately precedes the closing of temporary accounts. Once the financial statements have been prepared, the temporary accounts can be closed in order to start a new accounting period with fresh balances.

Which Step in the Accounting Cycle Immediately Precedes Closing the Temporary