Of the following steps of the accounting cycle, which step should be completed first?

A) Closing entries are journalized and posted to the ledger.
B) Transactions are posted to the ledger.
C) Adjusting entries are journalized and posted to the ledger.
D) Financial statements are prepared.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts and prepare the company’s books for the next period.

Financial Statements

Reports that summarize the financial performance, position, and cash flows of a business over a specific period of time, including the balance sheet, income statement, and statement of cash flows.

Ledger

A book or collection of financial accounts in which transactions are recorded and summarized.