What is the correct order of the following steps in the accounting cycle? 1. Prepare an unadjusted trial balance. 2. Journalize and post adjusting entries. 3. Prepare financial statements. 4. Journalize and post closing entries. 5. Prepare a post-closing trial balance.

The correct order of the steps in the accounting cycle from the list provided is as follows:

1. Prepare an unadjusted trial balance. 2. Journalize and post adjusting entries. 3. Prepare financial statements. 4. Journalize and post closing entries. 5. Prepare a post-closing trial balance.

So, the list you've provided is already in the correct order. To give a little more detail:

1. **Prepare an unadjusted trial balance**: This is done by listing all the accounts and their balances at a particular date to ensure that the total debits equal the total credits. 2. **Journalize and post adjusting entries**: Entries are made at the end of the accounting period to adjust the accounts to their proper balances before financial statements are prepared. 3. **Prepare financial statements**: After adjusting entries are made, financial statements are prepared. These typically include the income statement, balance sheet, statement of retained earnings, and the statement of cash flows. 4. **Journalize and post closing entries**: These entries are made at the end of the accounting period to transfer the balances of temporary accounts (such as revenues, expenses, and dividends) to the permanent account, Retained Earnings. 5. **Prepare a post-closing trial balance**: This is the last step, ensuring that all debits still equal credits after the closing entries have been made and that the only accounts that have balances are the balance sheet accounts.

Extra: Understanding the accounting cycle can be helpful in keeping track of the financial activities of a business.

- **The Unadjusted Trial Balance** is usually the first time in the accounting cycle when you can get a glimpse of the entire financial picture of the company in raw form. It comprises all the general ledger accounts before any adjustments are made.

- **Adjusting Entries** serve to record the revenue that has been earned but not yet recorded and to recognize expenses in the period that they occur. This is aligned with the accrual basis of accounting.

- **Financial Statements** are the main product of the accounting cycle, aimed at providing important financial information about the company to users like management, shareholders, and creditors.

- **Closing Entries** essentially reset the balances of temporary accounts – revenue, expense, and dividends – so that they start at $0 for the next fiscal year.

- **The Post-Closing Trial Balance** confirms that the accounting ledger is in balance at the start of a new accounting period and that all the temporary accounts have been properly reset. This step provides an assurance that the books are clean and ready for the next period.

The cyclical nature of these steps continues indefinitely as long as a business is in operation, ensuring a constant flow of up-to-date financial information.