The accounting cycle is a series of steps in which accounting information is contained in its transactions, events, and arrangements. What are the series of steps involved in this task?

Question

Quizplus · Accepted Answer

The series of steps involved in the accounting cycle are record, organize, summarize, and report. This involves recording transactions, organizing them in a ledger, summarizing them in a trial balance, preparing financial statements, and finally reporting them to stakeholders. Option A is incorrect as closing is a part of the summarizing step. Option B is incorrect as analyzing precedes recording in the accounting cycle. Option D is also incorrect as preparing comes after recording in the cycle.

The Accounting Cycle Is a Series of Steps in Which