In which order do these steps in the accounting cycle occur?
I Prepare adjusting entries
II Prepare financial statements
III Record business transactions in the journal
IV Post to the ledger
V Journalise closing entries
A) I, II, III, IV, V
B) III, IV, I, V, II
C) IV, II, I, III, V
D) III, II, IV, V, I

Question

Quizplus · Accepted Answer

The correct order is: III) Record business transactions in the journal, IV) Post to the ledger, I) Prepare adjusting entries, V) Journalize closing entries, and finally II) Prepare financial statements. This sequence follows the logical flow of accounting processes from recording transactions to preparing final financial statements.

In Which Order Do These Steps in the Accounting Cycle