In the accounting cycle, the last step is
A) preparing the financial statements
B) journalizing and posting the adjusting entries
C) preparing a post-closing trial balance
D) journalizing and posting the closing entries

Question

Quizplus · Accepted Answer

The last step in the accounting cycle is preparing a post-closing trial balance. This step is done after all the closing entries have been made and is used to verify that debits equal credits after closing entries are posted, ensuring the ledger is balanced for the start of the new accounting period.

In the Accounting Cycle, the Last Step Is