What is the third step in the accounting cycle? Analyze source documents and record business transactions in a journal. Prepare a post-closing trial balance . Journalize and post the closing entries. Prepare a trial balance.

Question

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Answer 1

Textbook Question

Chapter 5, Problem 1QY

What is the third step in the accounting cycle?

Analyze source documents and record business transactions in a journal.
Prepare a post-closing trial balance.
Journalize and post the closing entries.
Prepare a trial balance.

Expert Solution & Answer

To determine

Find the correct option, the option that indicates the third step in accounting cycle.

Answer to Problem 1QY

The correct answer is option (d).

Explanation of Solution

Accounting cycle: The whole process of identifying, sorting, analyzing, and recording the transactions, journalizing the transactions, posting the entries, preparation of trial balance, updating the adjustments in worksheet, preparing financial statements, and closing the books, is referred to as accounting cycle.

Steps in accounting cycle:

Identify and sort the source documents, and record the business transactions.
Post the journal entries to the ledger accounts.
Prepare trial balance.
Identify and record the adjustments on the work sheet.
Complete work sheet.
Record the adjusting entries and post the entries.
Prepare financial statements from the balances of the accounts in the ledgers on work sheet.
Journalize the closing entries and post the entries.
Prepare a post-closing trial balance.

Justification for correct answer: Accounting cycle is the complete process of recording transactions, journalizing, posting, and preparation of financial statements. As per the steps in accounting cycle, the preparation of trial balance is the third step of accounting cycle process. Hence, option (d) is correct.

Justification for incorrect answers:

Option (a) is incorrect because identifying and sorting the source documents, and recording the business transactions is the first step of accounting cycle.
Option (b) is incorrect because preparation of post-closing trial balance is the ninth step in accounting cycle.
Option (c) is incorrect because journalizing and posting closing entries is the eighth step in accounting cycle.

Conclusion

Therefore, option (d) is correct answer.

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Students have asked these similar questions

Directions: USE THE NUMBERS 1-10 TO PLACE THE FOLLOWING STEPS OF THE ACCOUNTING CYCLE IN THEIR PROPER ORDER, 1 BEING THE FIRST IN ORDER, AND 10 TO THE LAST. A. Analyze business transactions F. Journalize/post-closing entries B. Collect/verify source documents G. Post journal entries C. Complete the worksheet H. Prepare financial statements D. Journalize business transactions I. Prepare a post-closing trial balance E. Journalize/post adjustments J. Prepare trial balance

The accounting cycle starts with the: a. preparation of trial balance b. preparation of adjusting entries c. analysis of business transaction d. preparation of ledger accounts

Explain what is occurring during each step in the accounting cycle that I listed below. Steps: 1. Business transactions occur & generate source documents. 2. Analyze and journalise transaction intormation into journal. 3. Posting of transaction information from journal to the ledger. 4. Prepare a trial balance. 5. Prepare a worksheet. 6. Journalise adjusting and closing entries. 7. Prepare financial statements. 8. Post adjusting and closing entries. 9. Prepare a post closing trail balance.

Answer 2

Textbook Question

Chapter 5, Problem 1QY

What is the third step in the accounting cycle?

Analyze source documents and record business transactions in a journal.
Prepare a post-closing trial balance.
Journalize and post the closing entries.
Prepare a trial balance.

Expert Solution & Answer

To determine

Find the correct option, the option that indicates the third step in accounting cycle.

Answer to Problem 1QY

The correct answer is option (d).

Explanation of Solution

Accounting cycle: The whole process of identifying, sorting, analyzing, and recording the transactions, journalizing the transactions, posting the entries, preparation of trial balance, updating the adjustments in worksheet, preparing financial statements, and closing the books, is referred to as accounting cycle.

Steps in accounting cycle:

Identify and sort the source documents, and record the business transactions.
Post the journal entries to the ledger accounts.
Prepare trial balance.
Identify and record the adjustments on the work sheet.
Complete work sheet.
Record the adjusting entries and post the entries.
Prepare financial statements from the balances of the accounts in the ledgers on work sheet.
Journalize the closing entries and post the entries.
Prepare a post-closing trial balance.

Justification for correct answer: Accounting cycle is the complete process of recording transactions, journalizing, posting, and preparation of financial statements. As per the steps in accounting cycle, the preparation of trial balance is the third step of accounting cycle process. Hence, option (d) is correct.

Justification for incorrect answers:

Option (a) is incorrect because identifying and sorting the source documents, and recording the business transactions is the first step of accounting cycle.
Option (b) is incorrect because preparation of post-closing trial balance is the ninth step in accounting cycle.
Option (c) is incorrect because journalizing and posting closing entries is the eighth step in accounting cycle.

Conclusion

Therefore, option (d) is correct answer.

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Answer 3

Textbook Question

Chapter 5, Problem 1QY

What is the third step in the accounting cycle?

Analyze source documents and record business transactions in a journal.
Prepare a post-closing trial balance.
Journalize and post the closing entries.
Prepare a trial balance.

Expert Solution & Answer

To determine

Find the correct option, the option that indicates the third step in accounting cycle.

Answer to Problem 1QY

The correct answer is option (d).

Explanation of Solution

Accounting cycle: The whole process of identifying, sorting, analyzing, and recording the transactions, journalizing the transactions, posting the entries, preparation of trial balance, updating the adjustments in worksheet, preparing financial statements, and closing the books, is referred to as accounting cycle.

Steps in accounting cycle:

Identify and sort the source documents, and record the business transactions.
Post the journal entries to the ledger accounts.
Prepare trial balance.
Identify and record the adjustments on the work sheet.
Complete work sheet.
Record the adjusting entries and post the entries.
Prepare financial statements from the balances of the accounts in the ledgers on work sheet.
Journalize the closing entries and post the entries.
Prepare a post-closing trial balance.

Justification for correct answer: Accounting cycle is the complete process of recording transactions, journalizing, posting, and preparation of financial statements. As per the steps in accounting cycle, the preparation of trial balance is the third step of accounting cycle process. Hence, option (d) is correct.

Justification for incorrect answers:

Option (a) is incorrect because identifying and sorting the source documents, and recording the business transactions is the first step of accounting cycle.
Option (b) is incorrect because preparation of post-closing trial balance is the ninth step in accounting cycle.
Option (c) is incorrect because journalizing and posting closing entries is the eighth step in accounting cycle.

Conclusion

Therefore, option (d) is correct answer.

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Answer 4

Textbook Question

Chapter 5, Problem 1QY

What is the third step in the accounting cycle?

Analyze source documents and record business transactions in a journal.
Prepare a post-closing trial balance.
Journalize and post the closing entries.
Prepare a trial balance.

Expert Solution & Answer

To determine

Find the correct option, the option that indicates the third step in accounting cycle.

Answer to Problem 1QY

The correct answer is option (d).

Explanation of Solution

Accounting cycle: The whole process of identifying, sorting, analyzing, and recording the transactions, journalizing the transactions, posting the entries, preparation of trial balance, updating the adjustments in worksheet, preparing financial statements, and closing the books, is referred to as accounting cycle.

Steps in accounting cycle:

Identify and sort the source documents, and record the business transactions.
Post the journal entries to the ledger accounts.
Prepare trial balance.
Identify and record the adjustments on the work sheet.
Complete work sheet.
Record the adjusting entries and post the entries.
Prepare financial statements from the balances of the accounts in the ledgers on work sheet.
Journalize the closing entries and post the entries.
Prepare a post-closing trial balance.

Justification for correct answer: Accounting cycle is the complete process of recording transactions, journalizing, posting, and preparation of financial statements. As per the steps in accounting cycle, the preparation of trial balance is the third step of accounting cycle process. Hence, option (d) is correct.

Justification for incorrect answers:

Option (a) is incorrect because identifying and sorting the source documents, and recording the business transactions is the first step of accounting cycle.
Option (b) is incorrect because preparation of post-closing trial balance is the ninth step in accounting cycle.
Option (c) is incorrect because journalizing and posting closing entries is the eighth step in accounting cycle.

Conclusion

Therefore, option (d) is correct answer.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Find the correct option, the option that indicates the third step in accounting cycle.

Answer to Problem 1QY

The correct answer is option (d).

Explanation of Solution

Accounting cycle: The whole process of identifying, sorting, analyzing, and recording the transactions, journalizing the transactions, posting the entries, preparation of trial balance, updating the adjustments in worksheet, preparing financial statements, and closing the books, is referred to as accounting cycle.

Steps in accounting cycle:

Identify and sort the source documents, and record the business transactions.
Post the journal entries to the ledger accounts.
Prepare trial balance.
Identify and record the adjustments on the work sheet.
Complete work sheet.
Record the adjusting entries and post the entries.
Prepare financial statements from the balances of the accounts in the ledgers on work sheet.
Journalize the closing entries and post the entries.
Prepare a post-closing trial balance.

Justification for correct answer: Accounting cycle is the complete process of recording transactions, journalizing, posting, and preparation of financial statements. As per the steps in accounting cycle, the preparation of trial balance is the third step of accounting cycle process. Hence, option (d) is correct.

Justification for incorrect answers:

Option (a) is incorrect because identifying and sorting the source documents, and recording the business transactions is the first step of accounting cycle.
Option (b) is incorrect because preparation of post-closing trial balance is the ninth step in accounting cycle.
Option (c) is incorrect because journalizing and posting closing entries is the eighth step in accounting cycle.

Conclusion

Therefore, option (d) is correct answer.

Answer 8

Expert Solution & Answer

To determine

Find the correct option, the option that indicates the third step in accounting cycle.

Answer to Problem 1QY

The correct answer is option (d).

Explanation of Solution

Accounting cycle: The whole process of identifying, sorting, analyzing, and recording the transactions, journalizing the transactions, posting the entries, preparation of trial balance, updating the adjustments in worksheet, preparing financial statements, and closing the books, is referred to as accounting cycle.

Steps in accounting cycle:

Identify and sort the source documents, and record the business transactions.
Post the journal entries to the ledger accounts.
Prepare trial balance.
Identify and record the adjustments on the work sheet.
Complete work sheet.
Record the adjusting entries and post the entries.
Prepare financial statements from the balances of the accounts in the ledgers on work sheet.
Journalize the closing entries and post the entries.
Prepare a post-closing trial balance.

Justification for correct answer: Accounting cycle is the complete process of recording transactions, journalizing, posting, and preparation of financial statements. As per the steps in accounting cycle, the preparation of trial balance is the third step of accounting cycle process. Hence, option (d) is correct.

Justification for incorrect answers:

Option (a) is incorrect because identifying and sorting the source documents, and recording the business transactions is the first step of accounting cycle.
Option (b) is incorrect because preparation of post-closing trial balance is the ninth step in accounting cycle.
Option (c) is incorrect because journalizing and posting closing entries is the eighth step in accounting cycle.

Conclusion

Therefore, option (d) is correct answer.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Find the correct option, the option that indicates the third step in accounting cycle.

Answer 12

Answer to Problem 1QY

The correct answer is option (d).

Answer 13

Explanation of Solution

Accounting cycle: The whole process of identifying, sorting, analyzing, and recording the transactions, journalizing the transactions, posting the entries, preparation of trial balance, updating the adjustments in worksheet, preparing financial statements, and closing the books, is referred to as accounting cycle.

Steps in accounting cycle:

Identify and sort the source documents, and record the business transactions.
Post the journal entries to the ledger accounts.
Prepare trial balance.
Identify and record the adjustments on the work sheet.
Complete work sheet.
Record the adjusting entries and post the entries.
Prepare financial statements from the balances of the accounts in the ledgers on work sheet.
Journalize the closing entries and post the entries.
Prepare a post-closing trial balance.

Justification for correct answer: Accounting cycle is the complete process of recording transactions, journalizing, posting, and preparation of financial statements. As per the steps in accounting cycle, the preparation of trial balance is the third step of accounting cycle process. Hence, option (d) is correct.

Justification for incorrect answers:

Option (a) is incorrect because identifying and sorting the source documents, and recording the business transactions is the first step of accounting cycle.
Option (b) is incorrect because preparation of post-closing trial balance is the ninth step in accounting cycle.
Option (c) is incorrect because journalizing and posting closing entries is the eighth step in accounting cycle.