The last step in the accounting cycle is to
A) prepare a post-closing trial balance.
B) journalize and post closing entries.
C) prepare financial statements.
D) journalize and post adjusting entries.

Question

Quizplus · Accepted Answer

The last step in the accounting cycle is to prepare a post-closing trial balance. This is done after closing entries have been journalized and posted, and financial statements have been prepared. It is a report that shows the final balances of all accounts after closing entries have been made, and is used to ensure that debits and credits are still equal and to provide a starting point for the next accounting period.

The Last Step in the Accounting Cycle Is to