Final answer:
The process of updating and analyzing accounts before preparing financial statements is called the adjusting process, where journal entries are made for accrued revenues, expenses, deferred items, and depreciation to reflect accurate financial data.
Step-by-step explanation:
The analysis and updating of accounts at the end of the period before the financial statements are prepared is called the adjusting process or adjustment process. This process involves making journal entries that could include adjustments for accrued revenues, accrued expenses, deferred revenues, deferred expenses, and depreciation. These adjustments are necessary to ensure that the revenues and expenses are recognized in the period in which they are incurred, not just when the related cash flows occur, providing a more accurate representation of a company's financial position and performance for the period.