Acc280 Financial Accounting: E4-10 Josh Borke has prepared the following list
Acc280 Financial Accounting E4-10 Josh Borke has prepared the following list of statements about the accounting cycle.
Instructions: Identify each statement as true or false. If false, indicate how to correct the statement. 1. "Journalize the transactions" is the first step in the accounting cycle. 2. Reversing entries are a required step in the accounting cycle. 3. Correcting entries do no have to be part of the accounting cycle. 4. If a worksheet is prepared, some steps of the accounting cycle are incorporated into the worksheet. 5. The accounting cycle begins with the analysis of business transactions and ends with the preparation of a post-closing trial balance. 6. All steps of the accounting cycle occur daily during the accounting period. 7. The step of "post to the ledger accounts" occurs before the step of "journalize the transactions". 8. Closing entries must be prepared before financial statements can be prepared.