Question

After the accountant analyzes the impact of a transaction on the accounting equation, what is the next step?

1) Prepare financial statements
2) Record the transaction in the journal
3) Close the books for the accounting period
4) Calculate the net income

Answer 1

The next step after analyzing a transaction is to record it in the journal, which is the initial part of the double-entry accounting system.

Step-by-step explanation:

After an accountant analyzes the impact of a transaction on the accounting equation, the next step is to record the transaction in the journal. This is where all transactions are initially entered using a double-entry accounting system, which ensures that the accounting equation remains balanced with each transaction.

The steps following journal entries typically include posting to the general ledger, preparing a trial balance, and then constructing financial statements at the end of the accounting cycle.