90.2k views
3 votes
Accounting cycle includes all the steps necessary for a business to produce their financial statements for a specific period. True or false?

User AndASM
by
7.5k points

1 Answer

3 votes

Final answer:

The accounting cycle includes all the steps necessary for a business to produce their financial statements for a specific period.

Step-by-step explanation:

The statement is true. The accounting cycle is a series of steps that businesses follow to record, summarize, and report their financial transactions. These steps include analyzing transactions, journalizing them, posting to the ledger, preparing a trial balance, adjusting entries, preparing financial statements, and closing the books.

User Serge Balyuk
by
7.6k points