What is the third step in the accounting cycle? Analyze source documents and record business transactions in a journal. Prepare a post-closing trial balance . Journalize and post the closing entries. Prepare a trial balance.

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 5, Problem 1QY

What is the third step in the accounting cycle?

Analyze source documents and record business transactions in a journal.
Prepare a post-closing trial balance.
Journalize and post the closing entries.
Prepare a trial balance.

Expert Solution & Answer

To determine

Find the correct option, the option that indicates the third step in accounting cycle.

Answer to Problem 1QY

The correct answer is option (d).

Explanation of Solution

Accounting cycle: The whole process of identifying, sorting, analyzing, and recording the transactions, journalizing the transactions, posting the entries, preparation of trial balance, updating the adjustments in worksheet, preparing financial statements, and closing the books, is referred to as accounting cycle.

Steps in accounting cycle:

Identify and sort the source documents, and record the business transactions.
Post the journal entries to the ledger accounts.
Prepare trial balance.
Identify and record the adjustments on the work sheet.
Complete work sheet.
Record the adjusting entries and post the entries.
Prepare financial statements from the balances of the accounts in the ledgers on work sheet.
Journalize the closing entries and post the entries.
Prepare a post-closing trial balance.

Justification for correct answer: Accounting cycle is the complete process of recording transactions, journalizing, posting, and preparation of financial statements. As per the steps in accounting cycle, the preparation of trial balance is the third step of accounting cycle process. Hence, option (d) is correct.

Justification for incorrect answers:

Option (a) is incorrect because identifying and sorting the source documents, and recording the business transactions is the first step of accounting cycle.
Option (b) is incorrect because preparation of post-closing trial balance is the ninth step in accounting cycle.
Option (c) is incorrect because journalizing and posting closing entries is the eighth step in accounting cycle.

Conclusion

Therefore, option (d) is correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Order the following steps in the accounting process that focus on analyzing and recording transactions. a. Prepare and analyze the trial balance. b. Analyze each transaction from source documents. c. Record relevant transactions in a journal. d. Post journal information to ledger accounts.

Which process of the accounting cycle often requires the most analytical thought?A. making a journal entryB. posting transactions to accountsC. summarizing the trial balanceD. preparing the financial statements

identify and discuss the steps in the recording process. Be sure to discuss what each step does and how it relates to the steps before and after it. Then, answer the following questions: Should business transactions credits and debits be recorded directly into the ledger accounts? What are the advantages of recording in the journal before posting transactions into the ledger?

Answer 2

Textbook Question

Chapter 5, Problem 1QY

What is the third step in the accounting cycle?

Analyze source documents and record business transactions in a journal.
Prepare a post-closing trial balance.
Journalize and post the closing entries.
Prepare a trial balance.

Expert Solution & Answer

To determine

Find the correct option, the option that indicates the third step in accounting cycle.

Answer to Problem 1QY

The correct answer is option (d).

Explanation of Solution

Accounting cycle: The whole process of identifying, sorting, analyzing, and recording the transactions, journalizing the transactions, posting the entries, preparation of trial balance, updating the adjustments in worksheet, preparing financial statements, and closing the books, is referred to as accounting cycle.

Steps in accounting cycle:

Identify and sort the source documents, and record the business transactions.
Post the journal entries to the ledger accounts.
Prepare trial balance.
Identify and record the adjustments on the work sheet.
Complete work sheet.
Record the adjusting entries and post the entries.
Prepare financial statements from the balances of the accounts in the ledgers on work sheet.
Journalize the closing entries and post the entries.
Prepare a post-closing trial balance.

Justification for correct answer: Accounting cycle is the complete process of recording transactions, journalizing, posting, and preparation of financial statements. As per the steps in accounting cycle, the preparation of trial balance is the third step of accounting cycle process. Hence, option (d) is correct.

Justification for incorrect answers:

Option (a) is incorrect because identifying and sorting the source documents, and recording the business transactions is the first step of accounting cycle.
Option (b) is incorrect because preparation of post-closing trial balance is the ninth step in accounting cycle.
Option (c) is incorrect because journalizing and posting closing entries is the eighth step in accounting cycle.

Conclusion

Therefore, option (d) is correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 5, Problem 1QY

What is the third step in the accounting cycle?

Analyze source documents and record business transactions in a journal.
Prepare a post-closing trial balance.
Journalize and post the closing entries.
Prepare a trial balance.

Expert Solution & Answer

To determine

Find the correct option, the option that indicates the third step in accounting cycle.

Answer to Problem 1QY

The correct answer is option (d).

Explanation of Solution

Accounting cycle: The whole process of identifying, sorting, analyzing, and recording the transactions, journalizing the transactions, posting the entries, preparation of trial balance, updating the adjustments in worksheet, preparing financial statements, and closing the books, is referred to as accounting cycle.

Steps in accounting cycle:

Identify and sort the source documents, and record the business transactions.
Post the journal entries to the ledger accounts.
Prepare trial balance.
Identify and record the adjustments on the work sheet.
Complete work sheet.
Record the adjusting entries and post the entries.
Prepare financial statements from the balances of the accounts in the ledgers on work sheet.
Journalize the closing entries and post the entries.
Prepare a post-closing trial balance.

Justification for correct answer: Accounting cycle is the complete process of recording transactions, journalizing, posting, and preparation of financial statements. As per the steps in accounting cycle, the preparation of trial balance is the third step of accounting cycle process. Hence, option (d) is correct.

Justification for incorrect answers:

Option (a) is incorrect because identifying and sorting the source documents, and recording the business transactions is the first step of accounting cycle.
Option (b) is incorrect because preparation of post-closing trial balance is the ninth step in accounting cycle.
Option (c) is incorrect because journalizing and posting closing entries is the eighth step in accounting cycle.

Conclusion

Therefore, option (d) is correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 5, Problem 1QY

What is the third step in the accounting cycle?

Analyze source documents and record business transactions in a journal.
Prepare a post-closing trial balance.
Journalize and post the closing entries.
Prepare a trial balance.

Expert Solution & Answer

To determine

Find the correct option, the option that indicates the third step in accounting cycle.

Answer to Problem 1QY

The correct answer is option (d).

Explanation of Solution

Accounting cycle: The whole process of identifying, sorting, analyzing, and recording the transactions, journalizing the transactions, posting the entries, preparation of trial balance, updating the adjustments in worksheet, preparing financial statements, and closing the books, is referred to as accounting cycle.

Steps in accounting cycle:

Identify and sort the source documents, and record the business transactions.
Post the journal entries to the ledger accounts.
Prepare trial balance.
Identify and record the adjustments on the work sheet.
Complete work sheet.
Record the adjusting entries and post the entries.
Prepare financial statements from the balances of the accounts in the ledgers on work sheet.
Journalize the closing entries and post the entries.
Prepare a post-closing trial balance.

Justification for correct answer: Accounting cycle is the complete process of recording transactions, journalizing, posting, and preparation of financial statements. As per the steps in accounting cycle, the preparation of trial balance is the third step of accounting cycle process. Hence, option (d) is correct.

Justification for incorrect answers:

Option (a) is incorrect because identifying and sorting the source documents, and recording the business transactions is the first step of accounting cycle.
Option (b) is incorrect because preparation of post-closing trial balance is the ninth step in accounting cycle.
Option (c) is incorrect because journalizing and posting closing entries is the eighth step in accounting cycle.

Conclusion

Therefore, option (d) is correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Find the correct option, the option that indicates the third step in accounting cycle.

Answer to Problem 1QY

The correct answer is option (d).

Explanation of Solution

Accounting cycle: The whole process of identifying, sorting, analyzing, and recording the transactions, journalizing the transactions, posting the entries, preparation of trial balance, updating the adjustments in worksheet, preparing financial statements, and closing the books, is referred to as accounting cycle.

Steps in accounting cycle:

Identify and sort the source documents, and record the business transactions.
Post the journal entries to the ledger accounts.
Prepare trial balance.
Identify and record the adjustments on the work sheet.
Complete work sheet.
Record the adjusting entries and post the entries.
Prepare financial statements from the balances of the accounts in the ledgers on work sheet.
Journalize the closing entries and post the entries.
Prepare a post-closing trial balance.

Justification for correct answer: Accounting cycle is the complete process of recording transactions, journalizing, posting, and preparation of financial statements. As per the steps in accounting cycle, the preparation of trial balance is the third step of accounting cycle process. Hence, option (d) is correct.

Justification for incorrect answers:

Option (a) is incorrect because identifying and sorting the source documents, and recording the business transactions is the first step of accounting cycle.
Option (b) is incorrect because preparation of post-closing trial balance is the ninth step in accounting cycle.
Option (c) is incorrect because journalizing and posting closing entries is the eighth step in accounting cycle.

Conclusion

Therefore, option (d) is correct answer.

Answer 8

Expert Solution & Answer

To determine

Find the correct option, the option that indicates the third step in accounting cycle.

Answer to Problem 1QY

The correct answer is option (d).

Explanation of Solution

Accounting cycle: The whole process of identifying, sorting, analyzing, and recording the transactions, journalizing the transactions, posting the entries, preparation of trial balance, updating the adjustments in worksheet, preparing financial statements, and closing the books, is referred to as accounting cycle.

Steps in accounting cycle:

Identify and sort the source documents, and record the business transactions.
Post the journal entries to the ledger accounts.
Prepare trial balance.
Identify and record the adjustments on the work sheet.
Complete work sheet.
Record the adjusting entries and post the entries.
Prepare financial statements from the balances of the accounts in the ledgers on work sheet.
Journalize the closing entries and post the entries.
Prepare a post-closing trial balance.

Justification for correct answer: Accounting cycle is the complete process of recording transactions, journalizing, posting, and preparation of financial statements. As per the steps in accounting cycle, the preparation of trial balance is the third step of accounting cycle process. Hence, option (d) is correct.

Justification for incorrect answers:

Option (a) is incorrect because identifying and sorting the source documents, and recording the business transactions is the first step of accounting cycle.
Option (b) is incorrect because preparation of post-closing trial balance is the ninth step in accounting cycle.
Option (c) is incorrect because journalizing and posting closing entries is the eighth step in accounting cycle.

Conclusion

Therefore, option (d) is correct answer.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Find the correct option, the option that indicates the third step in accounting cycle.

Answer 12

Answer to Problem 1QY

The correct answer is option (d).

Answer 13

Explanation of Solution

Accounting cycle: The whole process of identifying, sorting, analyzing, and recording the transactions, journalizing the transactions, posting the entries, preparation of trial balance, updating the adjustments in worksheet, preparing financial statements, and closing the books, is referred to as accounting cycle.

Steps in accounting cycle:

Identify and sort the source documents, and record the business transactions.
Post the journal entries to the ledger accounts.
Prepare trial balance.
Identify and record the adjustments on the work sheet.
Complete work sheet.
Record the adjusting entries and post the entries.
Prepare financial statements from the balances of the accounts in the ledgers on work sheet.
Journalize the closing entries and post the entries.
Prepare a post-closing trial balance.

Justification for correct answer: Accounting cycle is the complete process of recording transactions, journalizing, posting, and preparation of financial statements. As per the steps in accounting cycle, the preparation of trial balance is the third step of accounting cycle process. Hence, option (d) is correct.

Justification for incorrect answers:

Option (a) is incorrect because identifying and sorting the source documents, and recording the business transactions is the first step of accounting cycle.
Option (b) is incorrect because preparation of post-closing trial balance is the ninth step in accounting cycle.
Option (c) is incorrect because journalizing and posting closing entries is the eighth step in accounting cycle.

Answer 14

Conclusion

Therefore, option (d) is correct answer.

Answer 15

Ch. 5 - What is the third step in the accounting cycle?...Ch. 5 - Which of the following accounts would be closed...Ch. 5 - If Income from Services had a 20,400 credit...Ch. 5 - Which of the following accounts would appear on a...Ch. 5 - Under the cash basis of accounting, which of the...Ch. 5 - Prob. 6QY Ch. 5 - Number in order the following steps in the...Ch. 5 - List the steps in the closing procedure in the...Ch. 5 - What is the purpose of closing entries? What is a...Ch. 5 - What are real accounts? What are nominal accounts?...

What is the third step in the accounting cycle? Analyze source documents and record business transactions in a journal. Prepare a post-closing trial balance . Journalize and post the closing entries. Prepare a trial balance.

Concept explainers

Videos

Answer to Problem 1QY

Explanation of Solution

Want to see more full solutions like this?

Chapter 5 Solutions

Additional Business Textbook Solutions