A business entity has only one accounting cycle over its economic existence.

Question

Quizplus · Accepted Answer

A business entity may have multiple accounting cycles over its economic existence, depending on its operations and accounting practices. An accounting cycle typically includes a series of steps that occur over a specific period, such as a month or a year, to record, classify, and summarize financial transactions and events. Businesses may use different accounting cycles based on their size, complexity, industry, and regulatory requirements.

A Business Entity Has Only One Accounting Cycle Over Its