Which of the following sequences indicates the correct order of steps in the accounting cycle?
A)T-accounts,journal entries,trial balance,financial statements.
B)T-accounts,journal entries,financial statements,trial balance.
C)Journal entries,T-accounts,trial balance,financial statements.
D)Journal entries,T-accounts,financial statements,trial balance.

Question

Quizplus · Accepted Answer

The correct order of steps in the accounting cycle is journal entries, T-accounts, trial balance, and financial statements. This is because journal entries are used to record transactions, T-accounts are used to summarize the transactions and determine account balances, the trial balance is used to ensure the debits and credits are equal, and finally, the financial statements are prepared based on the account balances. Option A and B are incorrect as financial statements should always come after trial balance. Option D is also incorrect because financial statements must be prepared after T-accounts have been updated.

Which of the Following Sequences Indicates the Correct Order of Steps