From the following list of steps in the accounting cycle, identify what two steps are missing:

Question

a. Transactions are analyzed and recorded in the journal.
b. Transactions are posted to the ledger.
c. An unadjusted trial balance is prepared.
d. An optional end-of-period spreadsheet is prepared.
e. Adjusting entries are journalized and posted to the ledger.
f. An adjusted trial balance is prepared.
g. Financial statements are prepared.
h. A post-closing trial balance is prepared.
Select the steps in the accounting cycle in their proper order and include the two missing steps.

Answer 1

The accounting cycle consists of a series of steps that help ensure that financial transactions are accurately recorded and reported. The steps in the accounting cycle, including the two missing steps, in their proper order are as follows:

1. Identify and analyze transactions (Missing step)
2. Transactions are recorded in the journal.
3. Transactions are posted to the ledger.
4. Prepare an unadjusted trial balance.
5. Prepare an optional end-of-period spreadsheet.
6. Adjusting entries are journalized and posted to the ledger.
7. Prepare an adjusted trial balance.
8. Prepare financial statements.
9. Close temporary accounts. (Missing step)
10. Prepare a post-closing trial balance.

Thus, the two missing steps in the sequence are "Identify and analyze transactions" and "Close temporary accounts."