Final Answer:
The correct order of the steps in the accounting cycle at the end of the accounting period is Prepare financial statements, Journalise and post adjustments, journalise and post the closing entries & prepare a trial balance. Thus, the correct answer is option (c) Prepare financial statements, Journalise and post adjustments, journalise and post the closing entries & prepare a trial balance.
Step-by-step explanation:
In the accounting cycle, the first step is to prepare financial statements. This involves summarizing the financial activities of a business over a specific period. After preparing financial statements, the next step is to journalize and post adjustments. Adjustments are necessary to ensure that the financial statements accurately reflect the company's financial position. These adjustments may include accruals, deferrals, or corrections.
The third step is to journalize and post the closing entries. Closing entries are essential to reset temporary accounts (revenue, expenses, dividends) to zero for the next accounting period. This ensures that these accounts start fresh, and only permanent accounts (assets, liabilities, equity) carry balances forward. Finally, the last step is to prepare a trial balance. The trial balance verifies that the debits and credits in the general ledger are equal, serving as a check for the accuracy of the accounting records.
In conclusion, the correct order is crucial for a systematic and accurate accounting process. Starting with financial statements and progressing through adjustments, closing entries, and a trial balance ensures that the financial records are comprehensive, accurate, and ready for the next accounting period. Therefore, the correct answer is option (c) Prepare financial statements, Journalise and post adjustments, journalise and post the closing entries & prepare a trial balance.