Which of the following represents the correct flow of accounting data?
A) transactions occur; transactions are analyzed; transactions are journalized and posted; source documents are prepared
B) transactions occur; source documents are prepared; transactions are journalized and posted;
C) transactions occur; source documents are prepared; transactions are analyzed; transactions are journalized and posted
D) source documents are prepared; transactions occur; transactions are analyzed; transactions are journalized and posted

Question

Quizplus · Accepted Answer

The correct flow of accounting data begins with transactions occurring, followed by preparation of source documents, then the transactions are analyzed, and finally journalized and posted. Therefore, option C is the correct flow of accounting data. Option A is incorrect since source documents are prepared after transactions occur and not before. Option B is incorrect because it omits the analysis of transactions. Option D is also incorrect since it assumes that source documents are prepared before transactions occur.

Which of the Following Represents the Correct Flow of Accounting