Questions: Question 18 4 pts Of the following steps of the accounting cycle, which step should be completed first? Closing entries are journalized and posted to the ledger. Transactions are posted to the ledger. Adjusting entries are journalized and posted to the ledger. Financial statements are prepared.

The answer is: Transactions are posted to the ledger.

Closing entries are typically completed at the end of the accounting cycle, after financial statements have been prepared. This step involves closing temporary accounts to prepare for the next accounting period.

This step is one of the initial steps in the accounting cycle. After transactions are recorded in the journal, they are posted to the ledger accounts. This process is essential for maintaining accurate financial records and is completed early in the cycle.

Adjusting entries are made at the end of the accounting period before financial statements are prepared. They ensure that revenues and expenses are recorded in the period in which they occur.

Financial statements are prepared after all transactions have been posted, and adjusting entries have been made. This step provides a summary of the financial activities and position of the business.