Exit Ticket - The Accounting Cycle

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

• Prepare trial balance

• Post to ledgers

• Calculate taxes

• Record in journals

What is the first step in the accounting cycle?

• 
  Identify transactions

• Prepare financial statements

• Make adjustments

• Record in journals

When a business sells a product, which of the following accounts is typically credited?

• Cash

• Inventory

• Sales Revenue

• Accounts Payable

Which step involves ensuring that total debits equal total credits?

• Identify transactions
  

• Prepare financial statements

• Prepare trial balance

• Make adjustments

What is the purpose of making adjustments in the accounting cycle?

• To record all cash transactions
  

• To determine the total sales for the period

• To identify new transactions

• To ensure the financial statements reflect the true financial position of the business