Final answer:
The statement is True; the accounting cycle is indeed a process that converts raw financial data into financial statements through several steps.
Step-by-step explanation:
True or False: The five-step process that takes a transaction from being mere raw financial data to its being summarized in the financial statements is called the accounting cycle.
This statement is True. The accounting cycle is a fundamental concept in financial accounting that involves several steps to process financial transactions and include them in a company's financial statements. The cycle begins with the identification of transactions, continues with recording them in journals, posting to ledger accounts, adjusting entries at the end of the period, preparing financial statements, and ends with closing the books for that accounting period. The business cycle, on the other hand, relates to economic activity fluctuations and has four phases, which do not pertain directly to the accounting cycle. While these two cycles differ, both are important in understanding the financial health and operation of a business.