Which one of the following is the last step in the accounting cycle?
A) Journalizing and posting accounting transactions
B) Journalizing and posting adjusting entries
C) Preparing a post-closing trial balance
D) Preparing financial statements

Question

Quizplus · Accepted Answer

The last step in the accounting cycle is preparing a post-closing trial balance. This is done after all adjusting entries have been journalized and posted, and after the closing entries have been made to transfer the balances of temporary accounts to the Retained Earnings account. The post-closing trial balance is used to ensure that the accounts are balanced and ready for the next accounting period. Although preparing financial statements is an important step in the accounting cycle, it typically occurs before the post-closing trial balance is prepared.

Which One of the Following Is the Last Step in the Accounting