The Following Are Steps to the Accounting Cycle

question 96

Multiple Choice

The following are steps to the accounting cycle. Of the following, which step should be done 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:

National Income

The total income earned by a country's residents and businesses, including wages, rent, interest, and profits.

Government Purchases

Expenditures made by local, state, or federal government sectors on goods and services that directly absorb resources.

Net Exports

The difference between a country's total exports of goods and services and its total imports of goods and services; net exports can be a positive or negative value.

Gross Investment

A company’s total investment in plant, equipment, and inventory. Also, a nation’s plant, equipment, inventory, and residential housing investment.