What is the third step in the accounting cycle?

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

Answer: (C)

The key sequence in the accounting cycle is about moving from recording transactions to organizing them by account. After you collect and analyze source documents to identify what happened, you record those events in the journal using debits and credits. The next step is posting those journal entries to the general ledger. Posting transfers each journal entry into the appropriate accounts, creating running balances for assets, liabilities, equity, revenues, and expenses. This consolidation is what lets you see the exact balance in every account, which you need before you can check accuracy with a trial balance and before preparing financial statements.