The First Step of the Accounting Cycle Is

question 144

Multiple Choice

The first step of the accounting cycle is

• A) recording journal entries.
• B) posting to the ledger.
• C) preparing a trial balance.
• D) analyzing business transactions.

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Definitions:

Federal Income Taxes

Taxes levied by the federal government on the annual income of individuals, corporations, trusts, and other legal entities.

Maturity Date

The specified date on a financial instrument at which the principal (or face value) is paid back to the investors and the instrument is no longer valid.

Notes Payable

Short-term or long-term liabilities representing borrowed funds that must be repaid to the creditor, typically with interest.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time, often related to loans or credit.