Question

The accounting cycle begins with the analysis of transactions and ends with the

Select one:
a. preparation of a post-closing trial balance
b. preparation of financial statements
c. journalising of adjusting entries
d. posting of transactions to ledger accounts

Answer 1

The accounting cycle ends with the preparation of a post-closing trial balance, which confirms that all accounts are in balance after closing entries are made and the temporary accounts are reset for the new period.

Step-by-step explanation:

The accounting cycle begins with the analysis of transactions and ends with the preparation of a post-closing trial balance. This is the last step in the accounting cycle, which ensures that the accounts are balanced and ready for the next accounting period. The accounting cycle involves several steps, starting from analyzing and recording transactions in the journal, to posting those transactions to ledger accounts, preparing adjusting entries, and then financial statements. After financial statements are prepared, closing entries are made to prepare temporary accounts for the new accounting period, leading up to the post-closing trial balance, which verifies that all debits and credits balance and that all temporary accounts have been closed.