Question

Analyzing transactions is the

A. second
B. third
C. first
D. last
step of the accounting cycle.

Answer 1

I think you can give third as the answer.

Step-by-step explanation:

Accounting is a systematic cycle of recording, classifying, summarizing, analyzing and interpreting the financial transactions and communicating the results to the users thereof.

The steps are

1. Recording

2. Classifying

3. Summarising

4. Analysis and interpretation

5. Communication

The steps order will remain the same but they may combine some steps at times. This answer is according to what I have learnt from my accountancy textbook. (TS Grewal)