Question

In the Accounting Cycle, the last step is a. journalizing and posting the adjusting entries b. journalizing and posting the closing entries. c. preparing the financial statements d. preparing a post-closing trial balance.

Answer 1

Answer:

d. preparing a post-closing trial balance.

Explanation:

The accounting cycle involves the multi-step process of identifying, analyzing, processing, sorting and recording the financial transactions of an organization. The multi-step commences from when the transaction occurs to the last stage where it is reported in the financial statements of the organization.

The accounting cycle helps the accountants in the accounting or financial departments to prepare an accurate, timely and up-to-date financial statement for organizations.

Basically, the first step in the accounting cycle is to identify and analyze the financial transactions of an organization.

In the Accounting Cycle, the last step is preparing a post-closing trial balance.

The post-closing trial balance is to ensure that debits and credits recorded are balanced, accurate and equal after making closing entries.