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

Question

Quizplus · Accepted Answer

The first step in the accounting cycle is to analyze source documents, such as receipts, invoices, and bank statements, to identify and record financial transactions. This step is crucial in ensuring accurate and complete financial records before moving on to other steps such as journalizing, posting, adjusting, and closing entries, and preparing financial statements.

Which of the Following Steps Is the First Step in Accounting