Question

Listed below, out of order are the steps in an accounting cycle.

THESE ARE THE STEPS:1. Analyze transactions from source documents2. Journalize transactions3. Post journal entries to general ledger account4. Prepare unadjusted trial balance5. Journalize adjusting entries6. Prepare adjusted trial balance7. Prepare financial statements8. Journalize closing entries9. Prepare post-closing trial balance
a) Place the numbers from the above list in the order in which the steps in the accounting cycle are performed
A. 3, 6, 2, 1, 4, 8, 5, 9,& 7
B. 2, 3, 6, 1, 4, 8, 5, 9, & 7
C. 3, 6, 2, 1,4,8,5,7,&9
D. 6, 3, 2, 1, 4, 8, 5, 9, & 7
b) Identify the steps in the accounting cycle that occur daily.A. 1, 2, 3, & 6
B. 2, 3, & 4
C. 1, 2, 3, 4,&6
D. 2, 3, & 6

Answer 1

Explanation:

The correct order in which accounting cycles are performed helps in structuring and produce an efficient result in the day-to-day activities of any business organization. This cannot be found in the options given but the correct order is shown below.

1, 2, 3, 4, 5, 6, 9, 8, 7

In other textbooks, it was stated that option A is correct for part 1.

The wide range of various entries or steps of the accounting cycle will happen depending on the circumstance yet these three activities are there any in the business association independent of circumstances.

1, 2, 3

In other textbook, it was stated that option B is correct for part 2.