In Which Order Do These Steps in the Accounting Cycle

question 8

Multiple Choice

In which order do these steps in the accounting cycle occur?
I Prepare adjusting entries
II Prepare financial statements
III Record business transactions in the journal
IV Post to the ledger
V Journalise closing entries

• A) I, II, III, IV, V
• B) III, IV, I, V, II
• C) IV, II, I, III, V
• D) III, II, IV, V, I

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Definitions:

FUTA

Federal Unemployment Tax Act, a United States federal law that imposes a payroll tax on employers to fund state workforce agencies.

Withheld

Refers to a portion of an employee's wages or salary that is not immediately paid out but is instead held back, commonly for tax purposes.

Matched by Employer

Contributions made by an employer to match the amount an employee contributes to their retirement plan or similar benefit program.

FICA - Social Security

A U.S. federal program funded by payroll taxes under the Federal Insurance Contributions Act (FICA) aimed at providing retirement, disability, and survivors' benefits.