Under the cycle approach, the only accounts that have two or more cycles associated with them are cash and accounts receivable.

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The cycle approach to auditing involves several cycles, such as the revenue, expenditure, and financing cycles, among others. Many accounts, not just cash and accounts receivable, can be associated with two or more cycles. For example, inventory might be involved in both the purchasing and sales cycles.

Under the Cycle Approach, the Only Accounts That Have Two