Question

question 5 (2 points)
based on the accounting foundation video on the accounting cycle, organize the accounting cycle in proper order:
prepare financial statements
prepare unadjusted trial balance
record journal entries
make adjusting entries
prepare adjusted trial balance
post to general ledger
make closing entries

Explanation:

The proper order of the accounting cycle is as follows: First, identify and analyze transactions to know what needs to be recorded. Then, record journal entries to document the transactions. Next, post these entries to the general ledger to update account balances. After that, prepare an unadjusted trial balance to check the equality of debits and credits before adjustments. Then, make adjusting entries to account for accruals, deferrals, etc. Following that, prepare an adjusted trial balance to ensure accuracy after adjustments. Then, prepare financial statements using the adjusted trial balance data. Finally, make closing entries to close temporary accounts.

Answer:

1. Identify and analyze transactions
2. Record journal entries
3. Post to general ledger
4. Prepare unadjusted trial balance
5. Make adjusting entries
6. Prepare adjusted trial balance
7. Prepare financial statements
8. Make closing entries