Which of the following statements is true of the accounting cycle?
A)It takes place only at the end of an accounting period.
B)It involves preparation of adjusting entries after the closing entries.
C)It ignores the beginning balances of accounts.
D)It is a process by which financial statements for a period are produced.

Question

Quizplus · Accepted Answer

The accounting cycle is a process by which financial statements for a period are produced. It includes steps such as collecting and analyzing data, recording transactions, preparing adjusting entries, closing the books, and generating financial statements. It is not limited to the end of an accounting period, as it is an ongoing process throughout the year.

Which of the Following Statements Is True of the Accounting