AFE Quiz 7: The Accounting Cycle

What is the first step in the accounting cycle?

Prepare trial balance
Post to ledger
Analyze transactions
Journalize transactions

Which document is used to initially record business transactions?

Ledger
Journal
Balance sheet
Income statement

After journalizing transactions, what is the next step in the accounting cycle?

Prepare financial statements
Post to ledger accounts
Prepare trial balance
Adjust entries

What is the purpose of preparing a trial balance?

To ensure debits equal credits
To pay employees
To calculate net income
To file tax returns

What is the main purpose of adjusting entries?

To record transactions in the journal
To update account balances before preparing financial statements
To prepare the post-closing trial balance
To close temporary accounts

Which step comes immediately after preparing financial statements in the accounting cycle?

Adjusting entries
Closing entries
Journalizing transactions
Posting to ledger

What is the final step in the accounting cycle?

Prepare adjusted trial balance
Prepare post-closing trial balance
Prepare financial statements
Post to ledger

Which accounts are closed at the end of the accounting cycle?

Asset and liability accounts
Permanent accounts
Temporary accounts
Equity accounts only

What is prepared after all closing entries have been posted?

Adjusted trial balance
Post-closing trial balance
Income statement
General journal

Which of the following is NOT a step in the accounting cycle?

Journalizing transactions
Posting to ledger accounts
Preparing a budget
Preparing financial statements

ACCOUNTING for Everyone

Get More From Accounting for Everyone With Weekly Updates