The Difference Between the Accounting Process and the Accounting Cycle

question 43

Multiple Choice

The difference between the accounting process and the accounting cycle is

• A) the accounting process results in the preparation of financial statements, whereas the accounting cycle is concerned with recording business transactions.
• B) the accounting cycle represents the steps taken to accomplish the accounting process.
• C) the accounting process represents the steps taken to accomplish the accounting cycle.
• D) merely semantic, because both concepts refer to the same thing.

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Definitions:

Accounting Systems

The methods and processes used by organizations to track and manage financial transactions, assets, and liabilities.

Research-And-Development

The investigative activities a business conducts to improve existing products and procedures or to lead to the development of new products and procedures.

Employee Leasing

The practice of hiring workers through a third-party organization which handles various HR tasks such as payroll and benefits administration.

WARN Act

The Worker Adjustment and Retraining Notification Act that requires employers to provide notice in advance of certain plant closings and mass layoffs.