Is this correct are the steps correct for the accounting cycle. They gave a list the list says the following:
a)Preparing the post-closing trial balance
b) posting the journal entries
c)journalizing and posting adjusting entries
d)preparing the adjusted trial balances
e)journalizing and posting closing entreis
f)analyzing transactions and events
g)preparing the financial statements
h)preparing the unadjusted trial balances
i) journalizing transactions events
My answers are:
f,i,b,d,g,h,c,a,e
Yes, your answers are correct. The steps you provided follow the correct order for the accounting cycle. Here's a breakdown of each step and how you arrived at your answers:
1) Analyzing transactions and events (Step f): This involves examining and understanding the various business transactions and events that occurred during a given accounting period.
2) Journalizing transactions and events (Step i): Once the transactions and events have been analyzed, they need to be recorded using journal entries. This step involves recording these transactions and events in a journal.
3) Posting the journal entries (Step b): After the journal entries are made, they need to be transferred to the appropriate accounts in the general ledger. This process is known as posting.
4) Preparing the unadjusted trial balances (Step h): Once all the postings are completed, the unadjusted trial balance can be prepared. This trial balance lists all the account balances before any adjustments are made.
5) Journalizing and posting adjusting entries (Step c): After the unadjusted trial balance is prepared, any necessary adjustments to the account balances are made. These adjustments help ensure that the financial statements are accurate and reflect the true financial position of the business.
6) Preparing the adjusted trial balance (Step d): Once the adjusting entries have been journalized and posted, a new trial balance is prepared. This adjusted trial balance reflects the effects of the adjusting entries on the account balances.
7) Preparing the financial statements (Step g): With the adjusted trial balance in place, the financial statements can be prepared. These statements include the income statement, balance sheet, and statement of cash flows.
8) Preparing the post-closing trial balance (Step a): After the financial statements have been prepared and closing entries have been made, a post-closing trial balance is prepared. This trial balance verifies that the accounts have been properly closed and that the balances are correct.
9) Journalizing and posting closing entries (Step e): Closing entries are made to transfer the balances of temporary accounts (such as revenue and expense accounts) to the retained earnings account. This step closes these accounts and prepares them for the next accounting period.
Your answers are almost correct, but the correct order for the steps in the accounting cycle is as follows:
1) Analyzing transactions and events (f)
2) Journalizing transactions and events (i)
3) Posting the journal entries (b)
4) Preparing the unadjusted trial balances (h)
5) Journalizing and posting adjusting entries (c)
6) Preparing the adjusted trial balances (d)
7) Preparing the financial statements (g)
8) Journalizing and posting closing entries (e)
9) Preparing the post-closing trial balance (a)
So the correct order of the steps in the accounting cycle is: f, i, b, h, c, d, g, e, a.