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Which of the following is not a step for preparing the balance sheet?

a) Analyzing transactions
b) Adjusting entries
c) Closing entries
d) Posting to the general ledger

1 Answer

3 votes

Final answer:

Closing entries is not a step for preparing the balance sheet.

Step-by-step explanation:

The correct answer is

c) Closing entries. Closing entries are performed during the closing process to transfer the balances of temporary accounts, such as revenues and expenses, to the retained earnings account.

The steps for preparing a balance sheet include analyzing transactions, adjusting entries, and posting to the general ledger.

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