Steps in the accounting cycle include (1)prepare financial statements, (2)post each journal entry to the appropriate ledger account,and (3)journalize transactions.Which of the following reflects the correct order of these steps?
A)(1), (2), (3).
B)(3), (2), (1).
C)(2), (1), (3).
D)(3), (1), (2).

Question

Quizplus · Accepted Answer

The correct order is to first journalize transactions (3), then post each journal entry to the appropriate ledger account (2), and finally prepare financial statements (1).

Steps in the Accounting Cycle Include (1)prepare Financial Statements, (2)post