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Question
The first step in accounting cycle is ______.
Options
Recording of transactions in journal
Preparing income statement
Posting entries in ledger
Preparing balance sheet
Solution
The first step in accounting cycle is Recording of transactions in journal.
Explanation:
The first step in the accounting cycle is recording transactions in the journal, also known as journaling. This step involves documenting all financial transactions in chronological order as they occur. After transactions are recorded in the journal, they are posted to the ledger, which is the next step in the cycle.
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