What Is the Correct Order of the Steps in the Accounting

question 63

Multiple Choice

What is the correct order of the steps in the accounting cycle?
1) Entries are made in the journal
2) A business transaction occurs
3) A trial balance is prepared
4) Entries are made in the ledger

• A) 2, 4, 1, 3
• B) 2, 1, 4, 3
• C) 3, 2, 1, 4
• D) 2, 4, 3, 1.

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Definitions:

Payment Interval

The standard interval at which payments are made on a loan or investment, like monthly or yearly.

Ordinary General Annuity

Recurrent equal value exchanges at the cessation of sequential periods over an established timeline.

Future Value

The projected value of an investment at a specific point in the future, considering factors like interest rates and compound interest.

RRSP

Registered Retirement Savings Plan, a retirement savings plan for individuals in Canada that is tax-deferred until withdrawal.