Which Is the Correct Sequential Order of the Following Steps

question 106

Multiple Choice

Which is the correct sequential order of the following steps in the accounting cycle?

• A)Transaction analysis, journal entries, trial balance
• B)Transaction analysis, posting to the ledger, journal entries
• C)Transaction analysis, posting to the ledger, adjusting the accounts
• D)Transaction analysis, journal entries, posting to the ledger

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Definitions:

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.

Income Statement

A financial statement showing the revenue, expenses, and profit or loss of a business over a specific period.

Long-term Note

A loan or credit with a repayment period that extends beyond one year, often used for significant business investments or purchases.

Financing Activities

Transactions involving the flow of cash between a company and its owners or creditors, relating to equity and debt financing.