The proper sequence for the steps in the accounting cycle is a follows
A) analyze and record transactions, post transaction to the ledger, prepare a trial balance, prepare financial statements, journalize closing entries, analyze adjustment data and prepare adjusting entries
B) prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger
C) analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger
D) prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries

Question

Quizplus · Accepted Answer

The accounting cycle begins with analyzing and recording transactions, followed by posting them to the ledger. After that, a trial balance is prepared to ensure that the debits equal the credits. Then, adjustment data is analyzed and adjusting entries are prepared. Financial statements are then prepared based on the adjusted trial balance. Finally, closing entries are journalized and posted to the ledger to close out temporary accounts and begin the next accounting cycle. This sequence of steps is properly outlined in option C.

The Proper Sequence for the Steps in the Accounting Cycle