Practice question · Put in order
Order the accounting cycle.
- Identify transactions from source documents
- Record journal entries
- Prepare the trial balance
- Close temporary accounts
- Post entries to the ledger
- Make adjusting entries and prepare statements
Hints
- Nothing can be recorded before the evidence exists.
- Chronological recording precedes sorting by account.
Show the answer
- Identify transactions from source documents
- Record journal entries
- Post entries to the ledger
- Prepare the trial balance
- Make adjusting entries and prepare statements
- Close temporary accounts
Why
Source document, journal, ledger, trial balance, adjust, close, a pipeline where each step's output feeds the next.
Practise The Accounting Cycle
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More questions on The Accounting Cycle
- The trial balance balances perfectly. Can we be sure there are no errors?
- Which accounts are zeroed out during the closing process?
- The closing entry transfers the net profit or loss into the retained earnings account.
- At period end, revenue and expense accounts are closed to zero while assets and liabilities carry forward.…
- Temporary or permanent? Sort each account.
- Match each source document to the transaction it evidences.
- A trial balance balances perfectly and the accounts still contain errors. Which class of error does it…