Which of the Following Sequences Indicates the Correct Order of Steps

question 79

Multiple Choice

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

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

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Definitions:

Allocative Efficiency

Occurs when resources are distributed in a way that maximizes the net benefit to society.

Consumer Surplus

The difference between the maximum price a consumer is (or consumers are) willing to pay for an additional unit of a product and its market price; the triangular area below the demand curve and above the market price.

Net Benefit

Net benefit refers to the total positive effects or advantages of a decision or action, minus any costs or negative effects associated with it.

Creative Destruction

A process where new innovations cause the demise of older industries or technologies, leading to economic growth and development.