The steps in the accounting cycle are different for a merchandising company than for a service company.

Question

Quizplus · Accepted Answer

The steps in the accounting cycle are fundamentally the same for both merchandising and service companies. They both follow the same basic steps such as journalizing transactions, posting to the ledger, preparing trial balance, adjusting entries, preparing financial statements, and closing entries. The main difference lies in the nature of transactions and accounts involved, not the accounting cycle steps.

The Steps in the Accounting Cycle Are Different for a Merchandising