Jim works in the accounting department at the Kansas Sunflower Corporation,where it is his job to record all transactions into journals.After completing this task,the next step in the accounting process is to:
A)Prepare the firm's financial statements.
B)Post the information to the ledger.
C)Determine the tax liability of the firm.
D)Balance the difference between assets and liabilities.

Question

Quizplus · Accepted Answer

After recording transactions into journals, the next step in the accounting process is to post the information to the ledger to keep a running balance of each account. This helps in preparing accurate financial statements and determining the tax liability of the firm. Balancing the difference between assets and liabilities is done at the end of the accounting period during the preparation of the balance sheet.

Jim Works in the Accounting Department at the Kansas Sunflower