Final answer:
The term 'accounting cycle' refers to the systematic process of recording, summarizing, and reporting business transactions for providing financial information to external users. It involves various steps from identifying to closing entries and prepares financial statements.
Step-by-step explanation:
The term accounting cycle refers to the full set of procedures utilized to measure and communicate business transactions to external decision makers. It involves multiple steps such as recording transactions, posting to the general ledger, preparing financial statements, and closing the books at the end of an accounting period. The accounting cycle helps ensure accurate financial reporting and provides important information for decision-making.
The correct answer to the question is b) Accounting. The accounting cycle involves several steps, including identifying transactions, recording them in journals, posting to ledgers, preparing a trial balance, adjusting entries, preparing financial statements, and closing the books. This process is systematic and follows the same path every cycle, ensuring consistency and reliability in financial reporting.