The first step in the accounting cycle is to:
A)analyze business transaction documents
B)prepare financial statements
C)analyze financial statements
D)prepare trial balance
E)post entries to ledger

Question

Quizplus · Accepted Answer

The first step in the accounting cycle is to analyze business transaction documents. This involves examining the documents that detail the transactions a business has engaged in, such as sales receipts, purchase invoices, and bank statements, to understand the financial impact of these transactions on the business. This analysis is crucial for accurately recording transactions in the accounting records.

The First Step in the Accounting Cycle Is To