The Proper Sequence for the Steps in the Accounting Cycle

question 170

Multiple Choice

The proper sequence for the steps in the accounting cycle is a follows

• A) analyze and record transactions, post transaction to the ledger, prepare a trial balance, prepare financial statements, journalize closing entries, analyze adjustment data and prepare adjusting entries
• B) prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger
• C) analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger
• D) prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries

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Definitions:

Expansionary Gap

A situation where the actual level of output in an economy exceeds the potential output level, usually characterized by high demand and inflationary pressures.

Government Purchases

Expenditures made by the government for goods and services that directly satisfy public consumption or are used in the production of other goods and services.

Stagflation

An economic condition characterized by slow economic growth, high unemployment, and high inflation, occurring simultaneously.

Demand-Management Policies

Strategies used by the government to influence the amount of aggregate demand in the economy, often through fiscal and monetary policies.