Which of the Following Is Not a Step in the Accounting

question 39

Multiple Choice

Which of the following is not a step in the accounting cycle?

• A)Prepare a trial balance.
• B)Prepare a purchase order.
• C)Prepare financial statements.
• D)Prepare an adjusted trial balance.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses, culminating in the net income for a specific period.

Owners' Equity

The residual interest in the assets of a company after deducting liabilities, representing the ownership interest.

Revenue And Expenses

The income generated from normal business operations and the costs incurred to generate that income.

Financial Statement

A financial statement is a formal record of the financial activities and position of a business, individual, or other entity, typically including the balance sheet, income statement, and cash flow statement.