What is the final step in the accounting cycle described here?

• A. A post-closing trial balance is prepared.
• B. Financial statements are prepared.
• C. An unadjusted trial balance is prepared.
• D. Transactions are analyzed and recorded in the journal.

Answer: (A)

After closing the temporary accounts, the ledger is checked with a post-closing trial balance. This step confirms that all debits still equal credits once revenues and expenses have been reset to zero and only permanent accounts remain. It provides a clean starting point for the next period and helps catch any posting errors before new transactions begin. Financial statements are produced after adjustments, the unadjusted trial balance is prepared earlier in the cycle, and recording transactions in the journal happens at the very start.