Asked by lizzy rybarczyk on May 06, 2024
Verified
The procedure used by accountants to convert data about individual transactions to financial statements is called
A) the cash flow method.
B) the statement of owners' equity.
C) the accounting cycle.
D) the balance sheet.
Accounting Cycle
Set of activities involved in converting information and individual transactions into financial statements.
Accountants
Professionals who perform financial functions related to the collection, accuracy, recording, analysis, and presentation of a business, organization, or individual's financial operations.
Cash Flow Method
An accounting technique that tracks the movement of cash in and out of a business, crucial for understanding its liquidity.
- Analyze the significance of accounting cycles, accrual accounting, and the timing of revenue recognition.
Verified Answer
MM
Mirsada MuratovicMay 10, 2024
Final Answer :
C
Explanation :
The accounting cycle is the comprehensive process used by accountants to convert data about individual transactions into financial statements. This cycle includes several steps, such as recording journal entries, posting to the ledger, preparing trial balances, making adjusting entries, and finally, compiling the financial statements.
Learning Objectives
- Analyze the significance of accounting cycles, accrual accounting, and the timing of revenue recognition.