Once an unadjusted trial balance has been prepared, the next step in the accounting cycle is
A) calculate profit.
B) calculate owner's capital at the end of the period.
C) analyze the accounts for adjusting entries which need to be made.
D) prepare financial statements.

Question

Quizplus · Accepted Answer

Adjusting entries are necessary to update all accounts before financial statements can be prepared. This ensures that the accounting records reflect the correct amounts at the end of the accounting period.

Once an Unadjusted Trial Balance Has Been Prepared, the Next