Of the Following Steps of the Accounting Cycle, Which Step

question 205

Multiple Choice

Of the following steps of the accounting cycle, which step should be completed first?

• A) Closing entries are journalized and posted to the ledger.
• B) Transactions are posted to the ledger.
• C) Adjusting entries are journalized and posted to the ledger.
• D) Financial statements are prepared.

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Definitions:

Opportunity Cost

The value of the next best alternative forgone as a result of making a decision.

Submarine

A watercraft capable of independent operation underwater, often used for military purposes.

Production Possibility Frontier

An illustration representing the maximum production capabilities for multiple goods with a certain amount of resources.

Opportunity Cost

The economic consequence of bypassing the closest better choice when making a decision.