Question

Which of the following is typically the first step in the accounting cycle?

A) Preparing reversing entries.

B) Journalizing a transaction.

C) Recording adjustments to the accounts.

D) Posting to the general ledger.

Answer 1

The first step in the accounting cycle is journalizing a transaction.

Step-by-step explanation:

The first step in the accounting cycle is journalizing a transaction. Journalizing involves recording each business transaction in the general journal, including the date, accounts affected, and the amounts. This step is important because it captures the initial entry of the transaction into the accounting system, providing the basis for further analysis and recording.