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In Which Order Are the Following Steps in the Accounting \quad

Question 1

Multiple Choice

In which order are the following steps in the accounting cycle performed at the end of the accounting period?
1.Prepare financial statements.
2.Prepare a post-closing trial balance.
3.Prepare and post the following journal entry:
\quad DR Insurance
\quad CR Prepaid insurance.
4.Prepare and post the following journal entry:
\quad DR Sales revenue
\quad CR Profit and loss summary.
5.Prepare an unadjusted trial balance.
6.Prepare an adjusted trial balance.


A) 5, 3, 6, 4, 2, 1
B) 5, 3, 6, 4, 1, 2
C) 5, 4, 6, 3, 2, 1
D) 5, 3, 6, 2, 1, 4.

Correct Answer:

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