Which of the following is the final step in the accounting cycle?
✨ Quizard's Answer
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E
None of the above
Explanation:
The accounting cycle is a series of steps that businesses follow to record, analyze, and report their financial transactions. The final step in the accounting cycle is to prepare a post-closing trial balance.
A post-closing trial balance is prepared after all the temporary accounts (revenue, expense, and dividend accounts) have been closed and the closing entries have been made. The purpose of the post-closing trial balance is to ensure that the debits and credits in the general ledger are equal and that all temporary accounts have been properly closed.
Option A, "Preparing a post-closing trial balance," is the correct answer because it accurately describes the final step in the accounting cycle.
Option B, "Journalizing the transactions," is incorrect because journalizing the transactions is an early step in the accounting cycle where transactions are recorded in the general journal.
Option C, "Journalizing and post closing entries," is incorrect because post-closing entries are made after the journalizing and posting of transactions have been completed.
Option D, "Post to ledger accounts," is incorrect because posting to ledger accounts is an earlier step in the accounting cycle where the transactions recorded in the general journal are transferred to the respective accounts in the general ledger.