Which of the Following Sequences Indicates the Correct Order of Steps

question 107

Multiple Choice

Which of the following sequences indicates the correct order of steps in the accounting cycle?

• A)Post to ledger,prepare journal entries,prepare trial balance,and prepare financial statements.
• B)Post to ledger,prepare journal entries,prepare financial statements,and prepare trial balance.
• C)Prepare journal entries,post to ledger,prepare trial balance,and prepare financial statements.
• D)Prepare journal entries,post to ledger,prepare financial statements,and prepare trial balance.

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Definitions:

Cash Outlays

Payments in cash for expenses or investments made by a business or individual.

Auto Leases

Contracts that allow a person to use a car for a set period of time in exchange for regular payments, without owning the vehicle.

Lessee

The party in a lease agreement that gains the right to use an asset in exchange for making payments to the lessor.

Lease

A contractual agreement allowing the lessee to use an asset owned by the lessor for a specified period in exchange for payment.