In the accounting process, which sequence of activities is correctly ordered?

Introduction / Context:
The accounting process can be viewed as a logical sequence of steps that transforms raw business activities into meaningful financial reports. At a high level, this process involves identifying which events are relevant, recording those events in a systematic way and then communicating the results to users. This question tests whether you can recall the correct order of these broad steps in the accounting cycle.

Given Data / Assumptions:
- The three key stages mentioned are identifying, recording and communicating. - Identifying refers to recognising relevant transactions and events. - Recording refers to journalising and posting to ledgers. - Communicating refers to preparing financial statements and reports.

Concept / Approach:
First, accountants must identify which economic events should be captured in the accounting records. Not every physical or operational event is recorded, only those with a financial impact measurable in monetary terms. Second, once identified, these events are recorded using the double entry system in journals and ledgers. This stage ensures that the data is organised and classified. Third, the recorded and summarised information is communicated to users through financial statements, management reports and disclosures. Because later steps depend on earlier ones, the correct logical sequence is identifying, then recording, then communicating.

Step-by-Step Solution:
Step 1: Decide what must come first. Accounting cannot record or report events that have not been identified, so identifying is the starting point. Step 2: After identification, the events must be recorded in journals and ledgers. Without recording, there is no organised data to summarise. Step 3: Only after recording and summarisation can information be communicated in the form of financial statements and other reports. Step 4: Option A lists exactly this order: identifying, then recording, then communicating. Therefore, option A is correct.

Verification / Alternative check:
Reviewing any introductory chapter on the accounting information system will usually show a diagram or description where economic events are first identified, then recorded, then communicated. The recording stage includes posting to accounts and preparing trial balances, while the communication stage includes financial statements, notes and management reports. None of the alternative sequences makes sense, because they imply reporting information before it exists or recording before deciding what needs to be captured.

Why Other Options Are Wrong:
Identifying then communicating then recording: This suggests that reports are generated before transactions are actually recorded, which is not possible. Communicating before recording or identifying: This reverses cause and effect, as accurate communication requires complete recorded data. Recording then communicating then identifying: This would mean entering numbers into the system without first deciding what events are relevant, which is not a logical process.

Common Pitfalls:
Students sometimes focus only on the detailed steps of the accounting cycle, such as preparing trial balances and adjusting entries, and forget the broader information system view. Remember that all these detailed steps fall under the recording stage. Another pitfall is thinking of accounting purely as report preparation; in reality, high quality reporting depends on correct identification and recording of transactions earlier in the cycle. For exam purposes, keep the simple memory aid: identify, record and then communicate.

Final Answer:
The correct option is Identifying economic events → Recording them in the accounts → Communicating information through reports, because this sequence reflects the logical flow of activities in the accounting process from raw events to useful information.