The order of the steps in the accounting cycle includes:
A)Adjusted trial balance, financial reports, adjusting entries, trial balance
B)Adjusted trial balance, adjusting entries, financial reports, trial balance
C)Trial balance, adjusting entries, adjusted trial balance, financial reports
D)Trial balance, financial reports, adjusting entries, adjusted trial balance

Question

Quizplus · Accepted Answer

The accounting cycle starts with recording transactions and preparing a trial balance. Once errors are corrected and adjusting entries are made, an adjusted trial balance is produced. Financial reports can then be prepared based on the adjusted trial balance. Therefore, the correct order is trial balance, adjusting entries, adjusted trial balance, and financial reports. Option C is the only answer choice with this order.

The Order of the Steps in the Accounting Cycle Includes