Final answer:
The first step of the accounting cycle is to post transactions to the ledger, followed by making adjusting entries, preparing financial statements, and then closing entries.
Step-by-step explanation:
The first step of the accounting cycle that should be completed is d) Transactions are posted to the ledger. Posting transactions to the ledger is the first step because it involves recording the financial transactions in the general ledger, which is the primary record for all accounts. After all the transactions have been posted to the ledger, the next step is to a) Adjusting entries are journalized and posted to the ledger. Adjusting entries are made to ensure that the financial statements accurately reflect the financial position and performance of the company.
Once the adjusting entries have been made, the financial statements can be prepared. This is step b) Financial statements are prepared. The financial statements provide a summary of the company's financial position and performance for a specific period of time. The final step of the accounting cycle is to c) Closing entries are journalized and posted to the ledger. Closing entries are made to transfer the balances of temporary accounts to the retained earnings account, effectively closing out the temporary accounts for the current accounting period.