The recurring steps performed each reporting period in preparing financial statements,starting with analyzing and recording transactions in the journal and continuing through the post-closing trial balance,is referred to as the:
A)Accounting period.
B)Operating cycle.
C)Accounting cycle.
D)Closing cycle.
E)Natural business year.

Question

Quizplus · Accepted Answer

The steps described in the question refer to the accounting cycle, which is the sequence of activities involved in recording, classifying, summarizing, and reporting financial information for a specific period. The accounting cycle typically begins with the analysis and recording of transactions in the journal, continues with the posting of transactions to the ledger, the preparation of adjusting entries, the creation of financial statements, and ends with the post-closing trial balance. The operating cycle is a different concept that refers to the time it takes for a company to acquire raw materials, produce goods or services, and sell them to customers, while the closing cycle specifically refers to the procedures used to close temporary accounts at the end of an accounting period. The natural business year is a fiscal year that corresponds to a company's normal operating cycle.

The Recurring Steps Performed Each Reporting Period in Preparing Financial