BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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prepare financial statements.
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analyze each transaction for its effect on the accounts.
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post to a journal.
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prepare a trial balance.
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Detailed explanation-1: -The usual sequence of steps in the recording process is to analyze the transaction first, then record it in the books of original entry or journal and then transfer the recorded entries in to their respective ledger accounts. Hence, it is a correct option.
Detailed explanation-2: -The first step in the accounting cycle is identifying transactions. Companies will have many transactions throughout the accounting cycle. Each one needs to be properly recorded on the company’s books. Recordkeeping is essential for recording all types of transactions.
Detailed explanation-3: -The first step is to determine the transaction and which accounts it will affect. The second step is recording in the particular accounts. Consideration must be taken when numbers are inputted into the debit and credit sections. Then, finally, the transaction is recorded in a document called a journal.
Detailed explanation-4: -The first four steps in the accounting cycle are (1) identify and analyze transactions, (2) record transactions to a journal, (3) post journal information to a ledger, and (4) prepare an unadjusted trial balance.
Detailed explanation-5: -The first step in the accounting cycle is to identify and record transactions through subsidiary ledgers (journals). When financial activities or business events occur, transactions are recorded in the books and included in the financial statements.