Asked by Katherine Fortune on Jul 16, 2024

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Which of the following is the first step in the accounting cycle?

A) Record transactions
B) Examine source documents
C) Post transactions
D) Prepare financial statements
E) Generate annual reports

Accounting Cycle

The four-step procedure of an accounting system: examining source documents, recording transactions in an accounting journal, posting recorded transactions, and preparing financial statements.

  • Get acquainted with the lexicon and procedures related to accounting, which includes tracking financial dealings, the accounting cycle’s systematic progression, and important numeric principles.
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MJ
Mausam JariwalaJul 17, 2024
Final Answer :
B
Explanation :
The first step in the accounting cycle is to examine source documents. These documents provide the evidence and details for financial transactions and are essential for recording accurate entries in the accounting system.