The recurring steps performed each reporting period, starting with analyzing and recording transactions in the journal and continuing through the post-closing trial balance, is referred to as the:
A) Accounting period.
B) Operating cycle.
C) Accounting cycle.
D) Closing cycle.
E) Natural business year.

Question

Quizplus · Accepted Answer

The accounting cycle refers to the steps taken in each reporting period to analyze and record transactions, adjust accounts, prepare financial statements, and close the books. It is an important process for ensuring accurate and reliable financial reporting.

The Recurring Steps Performed Each Reporting Period, Starting with Analyzing