Accountant Alan Wingspan has just finished working on the balance sheet,income statement,and statement of cash flows for his company.The next step in the accounting cycle involves:
A)Posting the results of these statements to the appropriate journal.
B)Analyzing the firm's financial statements to evaluate the financial condition of the firm.
C)Conducting forensic tests of the data to ensure its accuracy.
D)Placing the data used to construct the statements into an archive known as a data warehouse.

Question

Quizplus · Accepted Answer

The next step in the accounting cycle after completing the financial statements is analyzing those statements to evaluate the financial condition of the firm. This analysis helps the company make decisions about future operations and identify any potential issues that need to be addressed. Posting the results to the appropriate journal, conducting forensic tests, and archiving the data are all steps that occur earlier in the accounting cycle.

Accountant Alan Wingspan Has Just Finished Working on the Balance