The accounting process to get from transactions and events to financial statements begins with:
A)Identifying business transactions and events from source documents.
B)Record relevant transactions and events in a journal.
C)Analyze transactions and events using the accounting equation.
D)Presentation of financial information to decision-makers.
E)Preparation and analysis of the trial balance and financial statements.

Question

Quizplus · Accepted Answer

The accounting process starts with identifying business transactions and events from source documents such as receipts, invoices, and bank statements. This step is crucial as it ensures that all transactions are recorded accurately and completely. Only after this step can the other processes such as recording transactions in a journal, analyzing using the accounting equation, preparing financial statements and analyzing the trial balance can begin.

The Accounting Process to Get from Transactions and Events to Financial