Which of the following is the first step in the accounting cycle?
A)Prepare financial statements.
B)Analyze business transactions from source documents.
C)Prepare an adjusted trial balance.
D)Post the journal entries to the ledger.

Question

Quizplus · Accepted Answer

The first step in the accounting cycle is to analyze business transactions from source documents. This involves identifying, measuring, and recording business transactions in a systematic and chronological manner. Only after this step is completed can the other steps in the accounting cycle, such as posting to the ledger, preparing an adjusted trial balance, and preparing financial statements, be completed.

Which of the Following Is the First Step in the Accounting