In Which Order Are the Following Steps in the Accounting $\quad$

question 1

Multiple Choice

In which order are the following steps in the accounting cycle performed at the end of the accounting period?
1.Prepare financial statements.
2.Prepare a post-closing trial balance.
3.Prepare and post the following journal entry:
$\quad$ DR Insurance
$\quad$ CR Prepaid insurance.
4.Prepare and post the following journal entry:
$\quad$ DR Sales revenue
$\quad$ CR Profit and loss summary.
5.Prepare an unadjusted trial balance.
6.Prepare an adjusted trial balance.

• A)5, 3, 6, 4, 2, 1
• B)5, 3, 6, 4, 1, 2
• C)5, 4, 6, 3, 2, 1
• D)5, 3, 6, 2, 1, 4.

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Definitions:

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets.

Financial Statements

Detailed records that outline the financial activities and condition of a business, organization, or individual, including the balance sheet, income statement, and cash flow statement.

Stock Market

A marketplace where shares of public companies are bought and sold, affecting company capital and investor wealth.

Additional Paid-In Capital

The amount of money investors have paid for shares above the nominal value, reflecting the excess paid over the stated par value of the shares.