Which Of The Following Shows The Correct Order Of Events?
a. Unadjusted trial balance, adjusting entries, financial statements, adjusted trial balance
b. Unadjusted trial balance, adjusting entries, adjusted trial balance, financial statements
c. Financial statements, unadjusted trial balance, adjusting entries, adjusted trial balance
d. Financial statements, adjusted trial balance, unadjusted trial balance, adjusting entries
The correct answer is b. Unadjusted trial balance, adjusting entries, adjusted trial balance, financial statements.
Accounting Cycle
Accounting cycle is a guide in preparing the company’s financial reports at the end of the period, which provide useful information for its external users. These are series of steps that begins in analyzing and journalizing transaction.