Question

The accounting process is correctly sequenced asA) Identifying→recording→communicatingB) Identifying→communicating→recordingC) Communicating→Recording→IdentifyingD) Recording→Communicating→Identifying

Answer 1

Answer:

The correct answer to the following question is option A) Identifying - Recording - Communicating .

Explanation:

An accounting process can be defined as series of activities which begins with identifying a transaction and ends with books closed. This process is also called accounting cycle because this process is done every financial reporting period. Here the first step would be to identify a transaction, then getting source document of transaction ready, after that classifying the transaction , then recording it by making journal entries, which would then lead to preparation of ledger, trial balance and other financial statements etc.