Question

True or False. 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.

Answer 1

True

Step-by-step explanation:

The process of recording an processing the financial transactions of a company is called accounting cycle, it starts when the the transaction occurs and lasts till the accounts are closed. The accountants keep track of the accounting cycle, it repeats itself as long as company stays in business. The accounting cycle includes all the transactions, debits and credits, journal entries, accounts and adjustment of entries over a cycle. Journal entry is the recording of transaction into a journal, it is the first step of accounting cycle.

Answer 2

Statement is True

Step-by-step explanation:

Accounting cycle involves estimating, analyzing and reporting accounting transactions arising in a company. The cycle starts when a particular transaction occurs and ends when the same is reported in financial statements.

Accounting cycle helps in ensuring that financial statements are prepared correctly and timely. Transactions are first journalized and posted to ledger. Thereafter, unadjusted trial balance is prepared. Adjusting entries are made and then adjusted trail balance is prepared and finally financial statements are prepared.