Question

The following are some of the steps in the accounting cycle. Which of the following reflects the steps in the correct order? Financial statements are prepared. An unadjusted trial balance is prepared. Closing entries are journalized and posted to the ledger. Transactions are posted to the ledger. A post-closing trial balance is prepared.

Answer 1

Answer:

The correct answer is:

1. Journalized business transactions are posted to the ledger.
2. An unadjusted trial balance is prepared.
3. Financial statements are prepared.
4. Closing entries are journalized and posted to the ledger.
5. A post-closing trial balance is prepared.

Explanation:

The following phases or stages are distinguished in the accounting process or cycle:

1. Initial situation balance.
2. Accounting opening.
3. Record of the operations of the year.
4. Periodification
5. Adjustments prior to the determination of the benefit - or loss - generated in the year.
6. Balance check sums and balances.
7. Calculation of the result.
8. Accounting closing.
9. Annual accounts.
10. Distribution of the result.