Which of the following lists represents the correct sequence of stages in an accounting cycle?
A) record transactions,prepare statements,adjust accounts,close temporary accounts
B) prepare statements,close temporary accounts,record transactions,adjust accounts
C) close temporary accounts,record transactions,prepare statements,adjust accounts
D) record transactions,adjust accounts,prepare statements,close temporary accounts

Question

Quizplus · Accepted Answer

The correct sequence of stages in an accounting cycle is to record transactions first, then adjust accounts to accurately reflect financial information, prepare financial statements and lastly, close temporary accounts. This ensures that financial statements accurately represent the financial position of the organization. Therefore, the correct sequence is record transactions, adjust accounts, prepare statements, and close temporary accounts. Option D is the only option that follows this sequence.

Which of the Following Lists Represents the Correct Sequence of Stages