Some of the Steps in the Accounting Cycle Are Listed

question 211

Multiple Choice

Some of the steps in the accounting cycle are listed below.Select the choice that places these steps in the correct order.
1) Close the accounts.
2) Post transactions to accounts in the ledger.
3) Journalize daily transactions.
4) Record and post adjustments.
5) Prepare financial statements.

• A)2,3,4,5,1
• B)3,2,4,5,1
• C)3,2,4,1,5
• D)3,2,5,4,1

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Definitions:

After-Tax Profit

The net income after all taxes have been deducted, reflecting the actual profitability of a company.

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, typically recognized by a fall in GDP in two successive quarters.

Corporate Tax Rate

The proportion of a company's earnings that is remitted to the government in the form of taxes.

Demand Shock

An unexpected event that suddenly changes the demand for goods or services, potentially leading to swift changes in prices and economic adjustments.