The First Step in the Accounting Cycle Is to

question 14

Multiple Choice

The first step in the accounting cycle is to

• A)analyze source documents and record business transactions in a journal.
• B)prepare a post-closing trial balance.
• C)complete the work sheet.
• D)journalize and post the adjusting entries.

---

Definitions:

Loss

A financial condition where total expenses exceed total revenues, resulting in a negative profit.

Acceptance

The act of receiving or approving something, often used in the context of agreements or contracts.

Differential Cost

The difference in cost between two alternative decisions or scenarios, impacting the selection of one option over another.

Differential Cost

is the change in a company's cost of producing goods or services under two different action alternatives, essentially the cost difference between two choices.