The following are steps to the accounting cycle. Of the following, which step should be done 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

Posting transactions to the ledger should be the first step in the accounting cycle. This is because all subsequent steps, such as adjusting entries, closing entries, and preparation of financial statements, rely on accurate and updated information in the ledger.

The Following Are Steps to the Accounting Cycle