Which One of the Following Is an Optional Step in the Accounting

question 134

Multiple Choice

Which one of the following is an optional step in the accounting cycle of a business?

• A) Analyze business transactions
• B) Prepare a worksheet
• C) Prepare a trial balance
• D) Post to the ledger accounts

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Definitions:

Nonsufficient Funds Checks

Nonsufficient funds checks are checks that cannot be processed because the check writer's account does not have enough money to cover the amount.

Bank Reconciliation

The process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement.

Outstanding Checks

Checks that have been written and recorded in the payer's accounting system but have not yet been cleared or cashed by the recipient.

Bank Statement

A summary of financial transactions that have occurred over a given period on a bank account held by a person or business with a financial institution.