Juan Kirby is confused about how accounting information flows through the accounting system. He believes the flow of information is as follows. (a) Debits and credits posted to the ledger. (b) Business transaction occurs. (c) Information entered in the journal. (d) Financial statements are prepared. (e) Trial balance is prepared.

Explanation:

The following steps to flow the accounting information        

(b) Business transaction occurs.

(c) Information entered in the journal.  It includes the narration part

(a) Debits and credits posted to the ledger to their respective accounts

(e) A trial balance is prepared.  It aims to match the total debit and total credit columns

(d) Financial statements are prepared so that it could analyze the financial performance, position of the business organization

All these above steps are to be followed systematically so that the financial statement could be present in an accurate and ethical way. It must be free from any bias, it always be presented independently.