Question

Following is a partial year-end adjusted trial balance. What should be the next step in the accounting process?

a) Prepare financial statements
b) Record adjusting entries
c) Close the accounts
d) Post transactions to the ledger

Answer 1

The next step in the accounting process, based on the partial year-end adjusted trial balance, should be to prepare financial statements.

Step-by-step explanation:

The next step in the accounting process, based on the partial year-end adjusted trial balance, should be to prepare financial statements. This step involves preparing the income statement, balance sheet, and cash flow statement using the adjusted trial balance as the basis. Financial statements provide a summary of a company's financial performance and position and are essential for decision making and external reporting.