Question

The required steps in the accounting cycle are listed in random order below. List the steps in proper sequence.(a) Prepare a post-closing trial balance.(b) Prepare an adjusted trial balance.(c) Analyze business transactions.(d) Prepare a trial balance.(e) Journalize the transactions.(f) Journalize and post closing entries.(g) Prepare financial statements.(h) Journalize and post adjusting entries.(i) Post to ledger accounts.

Answer 1

Answer:

a) Analyze business transactions.

b) Journalize the transactions.

c) Post to ledger accounts.

d) Prepare a trial balance.

e) Journalize and post adjusting entries.

f) Prepare an adjusted trial balance.

g) Prepare financial statements.

h) Journalize and post closing entries.

i) Prepare a post-closing trial balance.

Explanation:

The accounting cycle is sequence of procedures that involves identifying, tracking and recording business transactions culminating in the preparation of the financial statement.