The recording process has a sequence of five steps.What is the specific order of the steps?
A)Journal,trial balance,financial statements,ledger,transaction documentation
B)Transaction documentation,journal,ledger,trial balance,financial statements
C)Transaction documentation,ledger,journal,trial balance,financial statements
D)Ledger,journal,transaction documentation,trial balance,financial statements
E)Trial balance,financial statements,ledger,journal,transaction documentation

Question

Quizplus · Accepted Answer

The correct order of the recording process is transaction documentation (which includes source documents such as invoices and receipts), journalizing (recording transactions in a chronological order), posting to the ledger (grouping similar transactions by accounts), preparing a trial balance (which ensures that debits and credits are equal), and finally, preparing financial statements (such as income statements and balance sheets). The sequence of B reflects this order correctly.

The Recording Process Has a Sequence of Five Steps