Which of the following sequence of actions describes the proper order in the accounting cycle?
A) Journalize, post, close, prepare financial statements, adjust, and analyze transactions
B) Prepare financial statements, journalize, post, adjust, analyze transactions, close
C) Analyze transactions, journalize, post, adjust, prepare financial statements, close
D) Post, close, prepare financial statements, adjust, analyze transactions, and journalize

Question

Quizplus · Accepted Answer

The correct sequence in the accounting cycle starts with analyzing transactions to understand their financial impact. Next, these transactions are journalized (recorded in the journal). The entries are then posted to the ledger. Adjustments are made to account for accruals, deferrals, and other financial events not captured at the time of initial recording. After adjustments, financial statements are prepared to provide a comprehensive view of the financial position and performance. Finally, temporary accounts are closed to prepare the books for the next accounting period.

Which of the Following Sequence of Actions Describes the Proper