The last step in the manual accounting cycle before financial statements are prepared is which of the following?
A) Post the journals to the ledger
B) Determine adjusting entries
C) Prepare an adjusted trial balance
D) Prepare a closing trial balance

Question

Quizplus · Accepted Answer

The last step in the manual accounting cycle before financial statements are prepared is to prepare an adjusted trial balance. This is done after determining adjusting entries and posting them to the ledger. The purpose of the adjusted trial balance is to ensure that total debits still equal total credits after all adjustments have been made. Once this is confirmed, financial statements can be prepared. The closing trial balance is prepared after the financial statements have been prepared to confirm that all temporary accounts have been closed out.

The Last Step in the Manual Accounting Cycle Before Financial