The steps involved in handling all of the transactions and events completed during an accounting period,beginning with placing data in a book of original entry and ending with a post-closing trial balance,are referred to collectively as the accounting cycle.

Question

Quizplus · Accepted Answer

The statement is true. The accounting cycle includes all steps from recording transactions in the books of original entry, to adjusting entries, to financial statement preparation, to closing entries, and finally generating a post-closing trial balance.

The Steps Involved in Handling All of the Transactions and Events