The Accounting Cycle

A list of accounts and their balances at a given time is called a(n)

• journal

• posting

• trial balance

• Income statement

The accounting cycle begins by recording _____________ in the form of journal entries.

• business transactions

• financial information

• business contracts

• trial balance

An accounting period is _____________________?

• any period for which an business chooses to prepare its books.

• time in which a business operates its financial year.

• a twelve-month period in which a business operates its financial year.

• None of the above.

After transaction information has been recorded in the journal, it is transferred to the

• trial balance

• Income statement

• book of original entry

• ledger

The Accounting cycle is the process by which companies produce their financial statements for a specific period.

TRUE

FALSE

• True

• False

Recording in the ledger is the third step in the accounting cycle.

• True

• False

Receipts are not source documents

• True

• False

The book of orginal entry is the _______ step in the Accounting Cycle

• 1st

• 2nd

• 3rd

• 4th

The first step in the recording process is to

• prepare financial statements.

• analyze each transaction for its effect on the accounts.

• post to a journal.

• prepare a trial balance.