Question

The first step in the recording process is to Group of answer choices prepare financial statements. analyze each transaction for its effect on the accounts. post to a journal. prepare a trial balance.

Answer 1

Answer:

analyze each transaction for its effect on the accounts

Explanation:

Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.

The first step in the recording process is to analyze each transaction for its effect on the accounts.

The other two (2) steps are;

I. Enter the information about the transaction into a journal.

II. Transfer the information in the journal to the right or correct account.