Final answer:
The correct order of the accounting cycle is journalizing, trial balance, ledger posting, financial statements.
Step-by-step explanation:
The correct order of the accounting cycle is 4) journalizing, trial balance, ledger posting, financial statements. This order ensures that transactions are recorded, summarized, and reported accurately.
First, the process starts with journalizing, where all the transactions are recorded in a general journal. Each transaction is described, date-stamped, and assigned the appropriate account numbers.
Next, trial balance is prepared to ensure that debits and credits are equal. It lists all accounts and their balances at a specific point in time.
After the trial balance, the ledger posting takes place. Each transaction recorded in the journal is individually posted to the respective accounts in the general ledger.
Finally, the financial statements are generated using the information recorded and summarized in the general ledger accounts. The financial statements communicate the financial performance and position of an organization.