Which of the following steps is the last step in accounting cycle?
A) Adjusting entries are recorded and posted.
B) Source documents are analyzed.
C) The financial statements are prepared.
D) Entries are recorded in the journal.

Question

Quizplus · Accepted Answer

The last step in the accounting cycle is the preparation of financial statements, which includes the income statement, balance sheet, and statement of cash flows. This step follows the completion of adjusting entries and posting them to the ledger, and is the final step before closing entries are made and the cycle starts again. Therefore, the correct choice is C.

Which of the Following Steps Is the Last Step in Accounting