Asked by chisom chikezie on May 08, 2024
Verified
Of the following steps of the accounting cycle, which step should be completed last?
A) An adjusted trial balance is prepared.
B) Transactions are posted to the ledger.
C) An unadjusted trial balance is prepared.
D) Adjusting entries are journalized and posted to the ledger.
Adjusted Trial Balance
A list of all accounts and their balances after adjusting entries are made, used as the basis for preparing financial statements.
Ledger
A comprehensive collection of accounts that records all financial transactions of a business, categorized for reporting and analysis purposes.
Adjusting Entries
Journal entries made at the end of an accounting period to allocate revenue and expenses to the period in which they actually occurred.
- Comprehend the process of the accounting cycle moving from recording transactions in journals to the preparation of financial statements.
Verified Answer
CW
Caylan WhelanMay 12, 2024
Final Answer :
A
Explanation :
The adjusted trial balance should be prepared after all adjusting entries have been journalized and posted to the ledger. This step occurs after transactions are posted to the ledger, an unadjusted trial balance is prepared, and adjusting entries are journalized and posted to the ledger.
Learning Objectives
- Comprehend the process of the accounting cycle moving from recording transactions in journals to the preparation of financial statements.