Which of the Following Is the First Step in the Accounting

question 2

Multiple Choice

Which of the following is the first step in the accounting cycle?

• A)Recognize that a transaction has occurred
• B)Prepare a source document
• C)Prepare a chart of accounts
• D)Journalize a transaction

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Definitions:

Defined Contribution Plans

A type of retirement plan where the employer, employee, or both make contributions on a regular basis, but future benefits are based on the amount contributed and the performance of the investment options chosen by the participant.

Cash

A form of liquid asset that represents money in physical form, such as banknotes and coins.

Employer

An entity or individual that hires employees or workers.

Pension Expense

The cost recognized by an employer for maintaining a pension plan for its employees over a period.