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Which of the following properly describes the accounting cycle in proper sequence, beginning after an unadjusted trial balance has been prepared?

a. Journalizing and posting adjusting entries
b. Preparing financial statements
c. Closing the books
d. All of the above

1 Answer

3 votes

Final answer:

After preparing an unadjusted trial balance, the next steps in the accounting cycle are journalizing and posting adjusting entries, preparing financial statements, and closing the books, in that order.

Step-by-step explanation:

The question pertains to the accounting cycle, which is a series of steps performed during the accounting period to record and classify business transactions and to summarize financial information for business stakeholders. Once an unadjusted trial balance has been prepared, the next steps, in proper sequence, are as follows:

  1. Journalizing and posting adjusting entries
  2. Preparing financial statements
  3. Closing the books

Therefore, the correct answer to the question is d. All of the above. First, adjustments are made to account for accrued and deferred items. Next, financial statements are prepared using the adjusted balances from the general ledger. Finally, temporary accounts are closed to prepare the books for the next accounting period.

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