Question

"The following are some of the steps in the accounting cycle. Which of the following reflects the steps in the correct order?

A) Financial statements are prepared.
B) An unadjusted trial balance is prepared.
C) Closing entries are journalized and posted to the ledger.
D) Journalized business transactions are posted to the ledger.
E) A post-closing trial balance is prepared.
a. C, B, A, E, D
b. A, D, E, B, C
c. E, A, D, B, C
d. D, B, A, C, E"

Answer 1

The correct sequence of steps in the accounting cycle is Journalized transactions posted to ledger, unadjusted trial balance, financial statements, closing entries, and post-closing trial balance; hence the answer is D, B, A, C, E.

Step-by-step explanation:

The correct order of steps in the accounting cycle is as follows:

1. Journalized business transactions are posted to the ledger.
2. An unadjusted trial balance is prepared.
3. Financial statements are prepared.
4. Closing entries are journalized and posted to the ledger.
5. A post-closing trial balance is prepared.

Therefore, the answer reflecting the correct sequence is (d) D, B, A, C, E.