Which One of the Following Statements Concerning the Accounting Cycle

question 210

Multiple Choice

Which one of the following statements concerning the accounting cycle is incorrect?

• A) The accounting cycle includes journalizing transactions and posting to ledger accounts.
• B) The accounting cycle includes only one optional step.
• C) The steps in the accounting cycle are performed in sequence.
• D) The steps in the accounting cycle are repeated in each accounting period.

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Definitions:

Average Total Cost

The total cost divided by the quantity produced, representing the cost of producing each unit of output.

Long Run

A period in which all factors of production and costs are variable, allowing full adjustment to changes.

Demand Equals

A state in a market where the quantity of a good or service desired by buyers is equal to the quantity supplied by sellers, resulting in market equilibrium.

Marginal Cost

The added expenditure resulting from creating an additional product or service unit.