Final answer:
The proper order of the steps in the accounting cycle is Adjusting entries, Financial statements, followed by Closing entries, which corresponds to option A.
Step-by-step explanation:
The correct order of the steps in the accounting cycle is reflected in option A, which is Adjusting entries, Financial statements, and then Closing entries. Once a company completes all business transactions for the period, accountants create and post adjusting entries. These entries adjust the books to reflect more accurate account balances at the period's end. After adjusting entries are posted to the general ledger and all account balances are updated, the adjusted trial balance can be used to prepare financial statements that reflect the company's financial status and operations. Lastly, after all financial statements are prepared and analyzed, closing entries are made to reset the balances of temporary accounts (revenues, expenses, dividends/distributions) to zero to start the next accounting period.