The last step in analyzing a business transaction is
A) decide which accounts are involved.
B) check to see if the equation is in balance.
C) write the transaction as a debit and credit.
D) classify the accounts involved.

Question

Quizplus · Accepted Answer

Checking if the accounting equation is in balance is the final step in analyzing a business transaction. This involves making sure that the total amount of debits equals the total amount of credits in the transaction and is an essential step to ensure the accuracy of the financial records. While classifying the accounts, deciding which accounts are involved, and writing the transaction as a debit and credit are important steps in analyzing a business transaction, they come before the final step of checking the equation's balance.

The Last Step in Analyzing a Business Transaction Is