PRC-1 · Chapter 3 · Question 27 of 100
Which of the following lists represents the correct sequential order of the fundamental accounting cycle?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Transactions, Books of prime entry, Ledgers, Trial balance, Financial statements.
Explanation
The logical flow of the accounting process begins with a Transaction, which is recorded in the Books of prime entry, posted to Ledgers, summarized in a Trial balance, and finally reported in the Financial statements.
More Ledgers and Trial Balance MCQs
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