|Purpose:||(L.O. 4) This exercise will review the proper sequence of the required steps in the accounting cycle.|
The required steps in the accounting cycle are listed in random order below.
|_______ a.||Prepare an adjusted trial balance.|
|_______ b.||Analyze business transactions.|
|_______ c.||Prepare a post-closing trial balance.|
|_______ d.||Prepare a trial balance.|
|_______ e.||Prepare financial statements.|
|_______ f.||Post to ledger accounts.|
|_______ g.||Journalize and post adjusting entries.|
|_______ h.||Journalize and post closing entries.|
|_______ i.||Journalize the transactions.|
Indicate the proper sequence of the steps by numbering them “1,” “2,” and so forth in the spaces provided.
TIP: As you work through this exercise, concentrate on the logical step progression and the flow of information in the data gathering process.