The______ is a six step procedure that results in the preparation and analysis of the major financial statements.
A)accounting cycle
B)financial performance appraisal
C)double-entry method
D)financial management process

Question

Quizplus · Accepted Answer

The accounting cycle is a six step procedure that includes analyzing transactions, recording transactions, posting to the general ledger, preparing a trial balance, adjusting entries, and preparing financial statements. This process results in the preparation and analysis of the major financial statements, including the income statement, balance sheet, and cash flow statement. Therefore, option A is the correct answer. Option B, financial performance appraisal, is a term used to describe the process of evaluating a company's financial performance using various metrics and ratios. Option C, double-entry method, is a fundamental concept in accounting that requires every transaction to have equal debits and credits. Option D, financial management process, refers to the broader process of managing an organization's finances, which encompasses more than just the preparation and analysis of financial statements.

The______ Is a Six Step Procedure That Results in the Preparation