Answer
b), c), a), e), d)
Work Step by Step
The correct flow of the accounting information are as follows:
b) Accounting transaction occurs.
A financial event takes place (e.g., a sale, purchase, payment, etc.).
c) Information is entered in the journal.
The transaction is recorded in the journal using debits and credits (this is called journalizing).
a) Debits and credits are posted to the ledger.
The journal entries are transferred to the general ledger, which organizes transactions by account.
e) Trial balance is prepared.
A trial balance is created to ensure total debits equal total credits and to check for errors.
d) Financial statements are prepared.
Using the adjusted trial balance, the company prepares the income statement, balance sheet, and statement of cash flows.
