Which of the following steps of the accounting cycle is not completed at the end of the period? A. Journalize transactions as they occur. B. Journalize and post the closing entries. C. Prepare the post-closing trial balance. D. Prepare the financial statements.

Answer: The answer is C. Prepare the post-closing trial balance.

Explanation:

A. Journalize transactions as they occur - This activity occurs as there are transactions to be recorded based on the activity of the Company. In most cases, there is online real time posting of transactions by the system through automation. The entries processed impact period-end position.

B. Journalize and post the closing entries - In some cases, entries that are not system driven, are posted at the end of the period.

C. Prepare the post-closing trial balance - This occurs after the system has closed for the period. It consists of entries posted after the period has closed.

D. Prepare the financial statements - Financial statements are prepared at a particular end of period, usually, monthly in form of management accounts, quarterly, semiannually and annually.

The correct answer is letter "A": Journalize transactions as they occur.

Explanation:

The accounting record-keeping of a company consists of recording its economic transactions as they happen. Firms need to maintain their books up to date during the year so the information summarized at the end of the period is accurate and reflects the real situation of the institution. This last is vital if the corporation wants to make the most optimal decision to continue doing business.

Journalizing and posting the closing entries, preparing the post-closing trial balance and the financial statement are activities performed by the end of the year.