Rudiger has just recorded and posted his business transactions to the ledger. His next step in the accounting cycle is to _______.

Rudiger has just recorded and posted his business transactions to the ledger. His next step in the accounting cycle is to _______.

• A. Prepare the Income Statement
• B. Collect All Receipts and Invoices
• C. Analyze Transactions
• D. Prepare an Unadjusted Trial Balance

Answer: (D)

After posting to the ledger, the immediate next step is to prepare an unadjusted trial balance. This serves as a quick check that the total debits equal total credits across all accounts, confirming that the postings are balanced and accurate. It also provides a starting point for the next phase—making adjusting entries to capture accruals and deferrals that haven't been recorded yet. The income statement comes later, after these adjustments, to reflect proper interim results. Collecting receipts and invoices and analyzing transactions happen earlier in the cycle, during recording and journaling, not after posting. The unadjusted trial balance specifically is the balances shown before any adjustments, acting as a checkpoint and foundation for subsequent steps.

After posting to the ledger, the immediate next step is to prepare an unadjusted trial balance. This serves as a quick check that the total debits equal total credits across all accounts, confirming that the postings are balanced and accurate. It also provides a starting point for the next phase—making adjusting entries to capture accruals and deferrals that haven't been recorded yet. The income statement comes later, after these adjustments, to reflect proper interim results. Collecting receipts and invoices and analyzing transactions happen earlier in the cycle, during recording and journaling, not after posting. The unadjusted trial balance specifically is the balances shown before any adjustments, acting as a checkpoint and foundation for subsequent steps.