Asked by Megan Green on Apr 26, 2024

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In the accounting cycle, the last step is

A) preparing the financial statements
B) journalizing and posting the adjusting entries
C) preparing a post-closing trial balance
D) journalizing and posting the closing entries

Post-Closing Trial Balance

A summary of all account balances in a company's general ledger after closing entries are made, serving to verify the equality of debits and credits.

Financial Statements

Documents that provide an overview of a company's financial condition in both short and long term, including the balance sheet, income statement, and cash flow statement.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent ones, thereby preparing the accounts for the next period.

  • Acquire knowledge on the sequence of the accounting cycle beginning with journal entries and culminating in the creation of financial statements.
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AF
Abbigail FriesApr 30, 2024
Final Answer :
C
Explanation :
The last step in the accounting cycle is preparing a post-closing trial balance. This step is done after all the closing entries have been made and is used to verify that debits equal credits after closing entries are posted, ensuring the ledger is balanced for the start of the new accounting period.