BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Analyze each transaction as it happens.
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Journalize each transaction.
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Prepare unadjusted trial balance and worksheet
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Prepare an adjusted trial balance.
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Detailed explanation-1: -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-2: -1. Identify and analyze transactions. The first step in the accounting cycle is to identify and analyze all transactions made during the accounting period, including expenses, debt payments, sales revenue and cash received from customers.
Detailed explanation-3: -1. Identify the accounts involved. The first step is to determine which accounts are affected by the transaction. For example, if a business owner invests $10, 000 in cash into the business in exchange for common stock, the accounts involved would be the cash account and the common stock account.
Detailed explanation-4: -Defining the accounting cycle with steps: (1) Financial transactions, (2)Journal entries, (3) Posting to the Ledger, (4) Trial Balance Period, and (5) Reporting Period with Financial Reporting and Auditing.