Final answer:
The first step in the accounting cycle is analyzing business transactions, which involves reviewing each finance-related event of an entity and determining its impact on the financial position before recording it.
Step-by-step explanation:
The first step in the accounting cycle is b. Analyzing business transactions. This involves reviewing the financial transactions and determining their impact on the financial position of the entity. It is essential to thoroughly understand each transaction to accurately record it in the company's accounting system. This analysis forms the basis for the subsequent steps in the accounting cycle, such as journalizing, posting, and ultimately preparing the financial statements.
The first step in the accounting cycle is analyzing business transactions. This involves examining the financial effects of each transaction and determining how they should be recorded in the accounting records. For example, if a company purchases inventory, the analyst would assess the impact on assets and liabilities to ensure accurate recording.