Which of the following statements is true concerning the steps in the accounting cycle?
A) Preparing a trial balance should be completed before recording business transactions into a journal.
B) Journalizing and posting the closing entries should be completed after preparing financial statements.
C) Completing the work sheet should be completed after preparing the financial statements.
D) Preparing a post-closing trial balance should be completed before completing the work sheet.

Question

Quizplus · Accepted Answer

According to the steps in the accounting cycle, preparing financial statements should be completed after journalizing and posting the closing entries. Therefore, option B is correct. Option A is incorrect as preparing a trial balance should be completed after recording business transactions into a journal. Option C is incorrect as completing the work sheet should be completed before preparing the financial statements. Option D is incorrect as preparing a post-closing trial balance should be completed after preparing financial statements.

Which of the Following Statements Is True Concerning the Steps