Question

Which of the following depicts the proper sequence of steps in the accounting cycle?
a. Journalize the transactions, analyze business transactions, prepare a trial balance
b. Prepare a trial balance, prepare financial statements, prepare adjusting entries
c. Prepare a trial balance, post to ledger accounts, post adjusting entries
d. Prepare a trial balance, prepare adjusting entries, prepare financial statements

Answer 1

Answer:

Option D. Prepare a trial balance, prepare adjusting entries, prepare financial statements

Explanation:

The accounting cycle sequence is given as under:

1. Analyzing the business
2. Journalize the Transactions
3. Post to Ledger Accounts
4. Prepare a Trial Balance
5. Posting adjusting entries and Preparing an adjusted trial balance
6. Preparing the financial statements
7. Journalize and post closing entries
8. Prepare a post closing trial balance and financial statement

So we can see that the three steps highlighted above are the sequence shown in the option D. Hence option D is correct.