Final answer:
The primary purpose of the accounting cycle is the preparation and analysis of financial statements, which involves a series of steps to ensure the accuracy of a company's financial information and compliance with regulations.
Step-by-step explanation:
The primary purpose of the accounting cycle is b) Preparation and analysis of financial statements. This cyclical process begins with the recording of business transactions and concludes with the preparation of financial reports and statements, which provide information about the company's financial performance and position. This process includes several steps like journalizing transactions, posting to the ledger, preparing a trial balance, making adjusting entries, preparing adjusted trial balance, preparing financial statements, and closing the books.
The accounting cycle ensures accuracy and compliance with financial regulations, supports strategic business decisions, and communicates financial health to stakeholders such as investors, creditors, and regulatory bodies. Therefore, options a) Entertainment, c) Physical fitness, and d) Historical events are not related to the accounting cycle.