The last step in the manual accounting cycle before the preparation of financial statements is:
A) Post adjusting entries to the general journal.
B) Determine adjusting entries.
C) Prepare an adjusted trial balance.
D) Record journal entries and post to the ledger.

Question

Quizplus · Accepted Answer

The last step in the manual accounting cycle is to prepare an adjusted trial balance, which includes all adjusting entries made to the general journal. This adjusted trial balance is then used to prepare the financial statements. Therefore, option C is the correct choice. Options A and B involve determining and posting adjusting entries, which are steps that occur before the preparation of the adjusted trial balance. Option D involves recording journal entries and posting to the ledger, which occurs earlier in the accounting cycle.

The Last Step in the Manual Accounting Cycle Before the Preparation