The following are steps in the accounting cycle. Of the following, which would be prepared last?
A) An adjusted trial balance is prepared.
B) Transactions are posted to the ledger.
C) An unadjusted trial balance is prepared.
D) Adjusting entries are journalized and posted to the ledger.

Question

Quizplus · Accepted Answer

An adjusted trial balance is prepared last in the accounting cycle because it takes into account all adjusting entries made to the accounts during the period. The other options listed (posting transactions to the ledger, preparing an unadjusted trial balance, and journalizing and posting adjusting entries) all occur before the preparation of the adjusted trial balance.

The Following Are Steps in the Accounting Cycle