The accounting cycle refers to the time it takes a business to buy (or manufacture) inventory, sell that inventory, and collect the selling price of that inventory.

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The accounting cycle refers to the process of identifying, recording, and summarizing an organization's financial transactions for a specific period, and then reporting them in the financial statements. It does not specifically relate to the time it takes a business to buy or sell inventory and collect payments.

The Accounting Cycle Refers to the Time It Takes a Business