Which is the correct sequence of the following steps in the accounting cycle?

  1. Prepare journal entries, analyse transactions, prepare an adjusted trial balance.
  2. Prepare adjusted trial balance, prepare closing entries, and prepare financial statements.
  3. Post adjusting journal entries, prepare adjusted trial balance, prepare financial statements.
  4. Post closing entries, prepare financial statements, prepare an adjusted trial balance.

Answer c. Post adjusting journal entries, prepare adjusted trial balance, prepare financial statements

Explanation: The accounting cycle is an aggregate course of recognising, examining, and recording the accounting transactions of an organisation. It is a standard 8-step measure that starts when an exchange happens and finishes with its inclusion and consideration in the financial summaries.

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