In: Accounting
Which of the following is not a step in the accounting process? Multiple Choice
Record relevant transactions and events in a journal.
Post journal information to the ledger accounts.
Prepare and analyze the trial balance.
Analyze each transaction.
Verify that revenues and expenses are equal.
Ans. | Option 5th Verify that revenues and expenses are equal. | ||
Explanations: The following are the steps in accounting process: | |||
1 | Analyze business transactions. | ||
2 | Recording the journal entries. | ||
3 | ledger posting. | ||
4 | Prepare and analyze trial balance. | ||
5 | Make adjusting entries. | ||
6 | Adjustment of trial balance. | ||
7 | Prepared the Financial statements. | ||
8 | Close the accounts. | ||
9 | Post closing trial balance. | ||
*It is not necessary that the revenues and expenses would be equal. | |||
The differece between revenues and expenses is known as net income | |||
or net loss. | |||