Of the Following Steps of the Accounting Cycle, Which Step

question 22

Multiple Choice

Of the following steps of the accounting cycle, which step should be completed last?

• A) An adjusted trial balance is prepared.
• B) Transactions are posted to the ledger.
• C) An unadjusted trial balance is prepared.
• D) Adjusting entries are journalized and posted to the ledger.

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Definitions:

Accord And Satisfaction

A legal contract wherein parties agree to settle a dispute by accepting terms that differ from the original obligation.

Novation

The act of replacing an existing obligation with a new one, thereby extinguishing the original obligation.

Substituted Contract

This is a legal agreement replacing an earlier contract, agreed upon by all parties involved, and discharging the original contractual obligations.

Obligee

The party in a contract or agreement who is entitled to receive a performance or benefit from the obligor.