Question

Question:Order the following steps in the accounting process that focus on analyzing and recording transactions.

a. Prepare and analyze the trial balance.

b. Analyze each transaction from source documents.

c. Record relevant transactions in a journal.

d. Post journal information to ledger accounts.

Short answer

Answer

The steps would be arranged in the order (b), (c), (d), and (a).

Step-by-step solution

A brief of the given steps

a) Trial balance is the list of all accounts with their debit or credit balances.

b) Source documents are references for any transaction to be validated.

c) Journal is the original book of entry in which all transactions are recorded in chronological order.

d) Ledger accounts are a collection of accounts having similar nature.

Order of the given steps

In the accounting process, the first step is to analyze the transaction from their source document. After analyzing the transaction they are chronologically recorded in the journal. The next step is to classify those chronological transactions based on accounts and put them in one place under the ledger book. From the ledger book balance of all accounts is taken and listed in the trial balance either on debit or credit side based on the balance

So the order of the given steps would be—(b), (c), (d), and (a).