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.
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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.
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