Which step occurs immediately after posting transactions to the ledger?

Which step occurs immediately after posting transactions to the ledger?

• A. Prepare an Income Statement
• B. Prepare an Unadjusted Trial Balance
• C. Close the Books
• D. Prepare the Cash Flow Statement

Answer: (B)

After posting transactions to the ledger, you want to verify that the debits and credits are in balance across all accounts. This is done by preparing an unadjusted trial balance, which lists every account with its current balance and shows that total debits equal total credits before any adjusting entries are made. This step helps catch arithmetic or posting errors early and sets the stage for making necessary adjustments. The income statement and cash flow statement come later, after adjustments have been recorded and the balances reflect accruals and deferrals, and closing the books happens after those statements are prepared and the temporary accounts are closed. So the step immediately after posting transactions to the ledger is preparing the unadjusted trial balance.

After posting transactions to the ledger, you want to verify that the debits and credits are in balance across all accounts. This is done by preparing an unadjusted trial balance, which lists every account with its current balance and shows that total debits equal total credits before any adjusting entries are made. This step helps catch arithmetic or posting errors early and sets the stage for making necessary adjustments. The income statement and cash flow statement come later, after adjustments have been recorded and the balances reflect accruals and deferrals, and closing the books happens after those statements are prepared and the temporary accounts are closed. So the step immediately after posting transactions to the ledger is preparing the unadjusted trial balance.