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 will involve:
A)analyzing the firm's financial statements to evaluate the financial condition of the firm.
B)placing the data used to construct the statements into an archive known as a data warehouse.
C)posting the results of these statements to the appropriate journal.
D)conducting forensic tests of the data to ensure its accuracy.

Question

Quizplus · Accepted Answer

After completing the financial statements, the next step is typically to analyze them in order to evaluate the financial condition of the company. This can involve comparing the company's performance to industry benchmarks or to its own historical performance, identifying areas in which the company can improve its financial performance, and making decisions about how to allocate resources to achieve the company's financial goals. Therefore, option A is the correct answer.

Accountant Alan Wingspan Has Just Finished Working on the Balance