Which one of the following statements concerning the accounting cycle is incorrect?
A) The accounting cycle includes journalizing transactions and posting to ledger accounts.
B) The accounting cycle includes only one optional step.
C) The steps in the accounting cycle are performed in sequence.
D) The steps in the accounting cycle are repeated in each accounting period.

Question

Quizplus · Accepted Answer

The accounting cycle includes several optional steps, such as reversing entries and preparing a post-closing trial balance, which may be performed depending on the needs of the company or the preferences of the accountant. Therefore, statement B is incorrect.

Which One of the Following Statements Concerning the Accounting Cycle