Question

multiple choice question
the first step in the accounting cycle is to

● record transactions in journals
● take a trial balance
● analyze source documents
● perform an internal audit

Explanation:

In the accounting cycle, the first step is to analyze source documents. These documents provide evidence of business transactions and are the basis for further accounting processes like journal - entry recording. Taking a trial balance is a later step to check the equality of debits and credits. Performing an internal audit is not the first step in the cycle. Recording transactions in journals comes after analyzing the source documents.

Answer:

analyze source documents