Which of the Following Statements About the Accounting Cycle Is

question 33

Multiple Choice

Which of the following statements about the accounting cycle is true?

• A)The accounting cycle is the process of recording all economic events that affect the entity.
• B)The accounting cycle is the process of entering data into the accounting system to be processed, organized and used to produce financial statements.
• C)The accounting cycle is only applicable for entities using accrual accounting.
• D)The accounting cycle is completed on a weekly basis.

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Definitions:

Inventory

Refers to the goods and materials that a business holds for the ultimate goal of resale.

Government Securities

Financial instruments issued by the government to finance its expenditures, offering a relatively safe investment.

Money Market Accounts

Savings accounts that typically offer higher interest rates in exchange for larger deposit balances, with limited transaction privileges.

Cash

Cash represents money in the physical form of currency, such as banknotes and coins, that is used to conduct transactions.