Questions: What is the last step in the accounting cycle?

The answer is: prepare post-closing trial balance.

Explanation for each option:

1. Journalize closing entries: This is not the last step in the accounting cycle. It involves recording the closing entries to transfer balances from temporary accounts (like revenues, expenses, and dividends) to permanent accounts (like retained earnings).

2. Prepare post-closing trial balance: This is the correct answer. The post-closing trial balance is prepared after closing entries have been journalized and posted. It ensures that all temporary accounts have been closed and that the ledger is in balance, showing only the permanent accounts.

3. Post transactions to the ledger: This step occurs earlier in the accounting cycle. It involves transferring journal entries to the general ledger accounts.

4. Prepare adjusted trial balance: This step also occurs earlier in the accounting cycle, after adjusting entries have been made but before the financial statements are prepared. It ensures that the ledger is in balance after adjustments.

In summary, the last step in the accounting cycle is to prepare the post-closing trial balance, which confirms that all temporary accounts have been closed and the ledger is balanced.