Identify the correct sequence of accounting process

Correct answer: D. Identifying→recording→communicating

  • A. Communicating→Recording→Identifying
  • B. Recording→Communicating→Identifying
  • C. Identifying→communicating→recording
  • D. Identifying→recording→communicating

Explanation

The accounting process starts by identifying economic events, then records them in the books, and finally communicates the results through reports and financial statements. Recording cannot properly occur before the event has been identified.

Written and checked by , editorLast updated
Report an error

The more specific you are, the faster it gets fixed. A source beats an opinion.

Prefer email? support@testustad.com

About Accounting Principles

Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.

Practise Accounting Principles

351 free Accounting Principles MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.

Exams that ask Accounting questions like this

Accounting is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.

More Accounting Principles questions