Which of the following correctly states the proper order of the steps in the accounting cycle?
A)Record transactions,adjust accounts,close temporary accounts,prepare statements.
B)Adjust accounts,record transactions,close temporary accounts,prepare statements.
C)Record transactions,adjust accounts,prepare statements,close temporary accounts.
D)Adjust accounts,prepare statements,record transactions,close temporary accounts.

Question

Quizplus · Accepted Answer

In the accounting cycle,a company records transactions throughout the accounting period,then adjusts accounts at the end of the period.Next,the company prepares financial statements,and finally,it closes temporary accounts in order to begin the next accounting period.If accounts were closed prior to preparing statements,the income statement accounts would have zero balances on the income statement.

Which of the Following Correctly States the Proper Order of the Steps