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 all transactions into journals, the next step is to post the information to the ledger. This is where all the transactions are organized by account and the account balances are calculated. This information is then used to prepare financial statements, determine tax liability, and balance assets and liabilities. However, these tasks cannot be done until the ledger has been updated with the journal entries.

Jim Works in the Accounting Department at the Kansas Sunflower