The First Required Step in the Accounting Cycle Is

question 77

Multiple Choice

The first required step in the accounting cycle is:

• A)adjusting entries.
• B)journalizing transactions.
• C)analyzing transactions.
• D)posting transactions.

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Definitions:

Property, Plant, Equipment

Long-term tangible assets owned by a business for use in the production or supply of goods and services, also known as fixed assets.

Speculation

The act of trading in an asset or engaging in a financial transaction that has a significant risk of losing most or all of the initial outlay, in expectation of a substantial gain.

Investments

Assets purchased with the expectation that they will generate income in the future or appreciate and be sold at a higher price.

Standby Equipment

Equipment that is kept on hand and ready to be used as a backup in case primary equipment fails.