An optional step in the accounting cycle is the preparation of
A) adjusting entries.
B) closing entries.
C) a statement of cash flows.
D) a post-closing trial balance.

Question

Quizplus · Accepted Answer

The preparation of a post-closing trial balance is an optional step in the accounting cycle. This step involves creating a new trial balance after all adjusting and closing entries have been made to ensure that the ending balances of all accounts are correctly reflected. However, the preparation of adjusting entries, closing entries, and a statement of cash flows are all required steps in the accounting cycle.

An Optional Step in the Accounting Cycle Is the Preparation