Which of the following statements about the accounting cycle is true?
A)The accounting cycle is the process of recording all economic events that affect the entity.
B)The accounting cycle is the process of entering data into the accounting system to be processed, organized and used to produce financial statements.
C)The accounting cycle is only applicable for entities using accrual accounting.
D)The accounting cycle is completed on a weekly basis.

Question

Quizplus · Accepted Answer

The accounting cycle is the process of entering data into the accounting system to be processed, organized and used to produce financial statements. It includes steps such as journalizing transactions, posting to the ledger, preparing an unadjusted trial balance, adjusting entries, preparing an adjusted trial balance, preparing financial statements, closing entries, and preparing a post-closing trial balance. The accounting cycle is applicable regardless of the accounting method used (cash or accrual) and is typically completed on a monthly or quarterly basis, rather than weekly.

Which of the Following Statements About the Accounting Cycle Is