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) Closing cycle.
B) Natural business year.
C) Operating cycle.
D) Accounting cycle.
E) Accounting period.

Question

Quizplus · Accepted Answer

The process described in the question is known as the accounting cycle. This involves a series of steps to prepare financial statements, including analyzing and recording transactions, posting to the ledger, adjusting entries, preparing financial statements, and closing the books. The accounting cycle is performed for each accounting period and is essential for accurate and timely financial reporting.

The Recurring Steps Performed Each Reporting Period in Preparing Financial