Question

Which of the following lists the steps of the accounting cycle in proper sequence (some steps may be missing)?

A. prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger
B.prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries
C. analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger, and prepare a post-closing trial balance
D. analyze and record transactions, post transactions to the ledger, prepare a trial balance, prepare financial statements, journalize closing entries, analyze adjustment data and prepare adjusting entries

Answer 1

The correct sequence of steps in the accounting cycle is: analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger, and prepare a post-closing trial balance. Option C in the given choices is the correct answer.

Step-by-step explanation:

The correct sequence of steps in the accounting cycle is:

1. Analyze and record transactions
2. Post transactions to the ledger
3. Prepare a trial balance
4. Analyze adjustment data
5. Prepare adjusting entries
6. Prepare financial statements
7. Journalize closing entries and post to the ledger
8. Prepare a post-closing trial balance

In this sequence, option C - analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger, and prepare a post-closing trial balance - is the correct answer.