What Are the Distinct Stages in Accounting?

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Solution

The distinct stages in accounting are as follows:

Identifying and analysing business transactions

Recording of transactions in journals

Posting to respective ledger accounts

Preparation of unadjusted trial balance

Passing of adjustment entries

Preparation of adjusted trial balance

Preparation of financial statements (balance sheet, profit and loss statement)

Providing closing entries

Post closing trial balance

Reversing entries

Also read:

MCQs on Trial Balance

Difference Between Trial Balance and Balance Sheet

How to Prepare Trial Balance

Income and Expenditure Account Based on Trial Balance

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