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Which sequence correctly lists the daily tasks versus the period-end tasks in the accounting cycle?
AJournalizing and posting are daily; statements and closing are period-end
BClosing entries are daily; journalizing is period-end
CAll seven steps are performed only at period end
DFinancial statements are prepared daily; journalizing is period-end
Answer & Solution
Correct answer: A. Journalizing and posting are daily; statements and closing are period-end
1. Journalizing transactions and posting to the ledgers are done daily.
2. Preparing the financial statements and journalizing and posting closing entries occur at period end.
3. Closing is a period-end task, not daily, so option B is wrong.
4. Not all steps wait for period end (C), and statements are not daily (D).
5. Therefore journalizing and posting are daily; statements and closing are period-end.
_Source: Jonick, Principles of Financial Accounting (CC BY-SA 4.0), §1.6 "Account Wrap-Up", p.40_