Multiple Choice Question Which of the following activities in the accounting cycle is in the correct order of occurrence? O Summarize in T-accounts, prepare the financial statements, and prepare a trial balance. O Prepare the financial statements, adjust the accounts, and prepare the financial statements. Record a journal entry, summarize in T-accounts, and prepare a trial balance . O Record a joumal entry, prepare a trial balance, and analyze the effect

The correct sequence of activities in the accounting cycle ensures that financial information is accurately recorded, summarized, and reported. Let's break down the options: 1. **Summarize in T-accounts, prepare the financial statements, and prepare a trial balance.** - **Issue:** Preparing financial statements before the trial balance is not standard practice. The trial balance is essential to ensure that all entries are correct before creating financial statements. 2. **Prepare the financial statements, adjust the accounts, and prepare the financial statements again.** - **Issue:** This repeats the preparation of financial statements without first ensuring that all accounts are properly adjusted and balanced. 3. **Record a journal entry, summarize in T-accounts, and prepare a trial balance.** - **Correct:** This follows the standard accounting cycle: 1. **Record Journal Entries:** Initial recording of transactions. 2. **Summarize in T-accounts (Ledger):** Posting journal entries to the general ledger. 3. **Prepare a Trial Balance:** Ensuring that total debits equal total credits before moving on to adjustments and financial statements. 4. **Record a journal entry, prepare a trial balance, and analyze the effect.** - **Issue:** This option skips the step of posting to the ledger (T-accounts) before preparing the trial balance, which is essential for accurate balancing. **Therefore, the correct answer is:** **Record a journal entry, summarize in T-accounts, and prepare a trial balance.**