Which of the following sequences of documents or records describes the proper sequence in the accounting cycle?
A) Source documents, journal, ledger, work sheet, financial statements
B) Source documents, work sheet, journal, ledger, financial statements
C) Source documents, ledger, journal, work sheet, financial statements
D) Work sheet, source documents, financial statements, ledger, journal
E) Financial statements, journal, ledger, source documents, work sheet

Question

Quizplus · Accepted Answer

The correct sequence in the accounting cycle starts with source documents, which provide the evidence and data for transactions. These transactions are then recorded in a journal. From the journal, the entries are posted to the ledger. After the ledger, a work sheet is often prepared to facilitate the preparation of financial statements, which are the final output of the accounting cycle.

Which of the Following Sequences of Documents or Records Describes