Of the following steps of the accounting cycle, which step should be completed first?
A) Closing entries are journalized and posted to the ledger.
B) Transactions are posted to the ledger.
C) Adjusting entries are journalized and posted to the ledger.
D) Financial statements are prepared.

Question

Quizplus · Accepted Answer

Transactions must be recorded and posted to the ledger before any adjusting entries can be made or financial statements can be prepared. Therefore, posting transactions to the ledger should be completed first in the accounting cycle.

Of the Following Steps of the Accounting Cycle, Which Step