Asked by Calvin Nowicki on May 22, 2024
Verified
During the end-of-period processing, which of the following best describes the logical order of steps?
A) preparation of adjustments, adjusted trial balance, financial statements
B) preparation of income statement, adjusted trial balance, balance sheet
C) preparation of adjusted trial balance, cross-referencing, journalizing
D) preparation of adjustments, adjusted trial balance, posting
Adjusted Trial Balance
A trial balance prepared after adjusting entries are made and posted, used to verify the equality of debits and credits.
Financial Statements
These are formal records that detail a company's financial activities and condition, typically including the balance sheet, income statement, and cash flow statement.
Adjustments
Modifications made to financial records or statements to correct errors, account for accruals, or align with accounting principles.
- Ascertain the orderly progression of tasks within the end-of-period processing.
Verified Answer
SK
Shreyas KumbharMay 28, 2024
Final Answer :
A
Explanation :
The logical order of steps during the end-of-period processing is to first prepare adjustments, then create an adjusted trial balance to ensure the accounts are in balance, and finally use the adjusted trial balance to create the financial statements.
Learning Objectives
- Ascertain the orderly progression of tasks within the end-of-period processing.