Asked by Edgar Quinones on Jun 05, 2024
Verified
The first step in the recording process is to
A) prepare financial statements.
B) analyze each transaction for its effect on the accounts.
C) post to a journal.
D) prepare a trial balance.
Financial Statements
Reports detailing a company's financial performance, position, and cash flows, including balance sheet, income statement, and statement of cash flows.
Analyze Transaction
The process of reviewing and breaking down a financial transaction to understand its impact on the accounting equation.
- Understand the process for recording business transactions.
Verified Answer
DC
Dejah CarlockJun 05, 2024
Final Answer :
B
Explanation :
Before any information can be recorded, it must be analyzed in terms of its impact on the accounts. This involves determining which accounts will be affected by the transaction, and whether the transaction will increase or decrease the balance in each account. Once this analysis is complete, the information can then be recorded in a journal. Preparation of financial statements and trial balance comes much later in the recording process.
Learning Objectives
- Understand the process for recording business transactions.
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