Which of these represent the correct order of steps of the flow of accounting information? Prepare a trial balance. Analyze what has happened by using the chart of accounts and information from the source documents. Post entries to the accounts in the general ledger. Enter the business transactions in the general journal.

Question

Akira Moss

Business

26 August, 19:20

Which of these represent the correct order of steps of the flow of accounting information? Prepare a trial balance. Analyze what has happened by using the chart of accounts and information from the source documents. Post entries to the accounts in the general ledger. Enter the business transactions in the general journal.

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Answers (1)

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Scott Cantrell · Answer 1

1-Analyze what has happened by using the chart of accounts and information from the source documents.

2-Enter the business transactions in the general journal.

3-Post entries to the accounts in the general ledger.

4-Prepare a trial balance.

Explanation:

The flow of accounting information is also called accounting cycle. Is a collective process of recording and processing the accounting events of a company. The series of steps begin when a transaction occurs and end with its inclusion in the financial statements.

- Analyze what has happened by using the chart of accounts and information from the source documents.

The process starts with source documents which are the supporting original records of any transaction.

- Enter the business transactions in the general journal.

In the secod step, the transaction is registered in the journal, which is a chronological record of how the transactions affect the balances of applicable accounts.

- Post entries to the accounts in the general ledger.

In the third step, transactions are entered in the ledger.

- Prepare a trial balance.

The fourth step includes the preparation of the trial balance, which is a simple listing of all accounts from the ledger with their balances.