Answer:
Yes, the term "accounting cycle" refers to a six-step procedure that results in the preparation and analysis of the major financial statements. This procedure includes the following steps:
Identifying and collecting source documents, such as invoices and receipts, that provide information about financial transactions
Recording the financial transactions in the appropriate accounts, such as the general ledger
Adjusting the accounts to account for any incomplete or inaccurate information, and to ensure that they reflect the current state of the business
Preparing the financial statements, including the balance sheet, income statement, and statement of cash flows
Analyzing the financial statements to identify trends, evaluate performance, and make decisions about the future of the business
Closing the accounts at the end of the accounting period and preparing for the next cycle
The accounting cycle is an important process that helps businesses to accurately track their financial information, make informed decisions, and report their financial performance to stakeholders.