Two steps must be completed in order to prepare financial statements: recording transactions during the period and adjusting records to ensure all events are properly recorded.

Question

Quizplus · Accepted Answer

Recording transactions during the period captures all financial activities as they occur, while adjusting records ensures that all events are accurately reflected in the financial statements, accounting for things like accrued expenses and revenues not yet received. Both steps are essential for accurate financial reporting.

Two Steps Must Be Completed in Order to Prepare Financial