What is the second step in the accounting cycle?

• A. Journalize transactions
• B. Post to general ledger
• C. Collect and analyze source documents
• D. Prepare a trial balance

Answer: (B)

After recording each transaction in the journal, the next action is to transfer those entry amounts to the general ledger. Posting updates the balances of each individual account by bringing in the debits and credits from the journal, so you can see the running balances for every account. This ledger view is what you use to compile a trial balance and, eventually, the financial statements. Collecting and analyzing source documents happens before journalizing, since you need to identify what occurred; preparing a trial balance comes after posting, because it relies on the updated ledger balances.