The First Step in the Accounting Cycle Is To

question 132

Multiple Choice

The first step in the accounting cycle is to:

• A)analyze business transaction documents
• B)prepare financial statements
• C)analyze financial statements
• D)prepare trial balance
• E)post entries to ledger

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Definitions:

Accountable

Being responsible or answerable for actions or decisions, either to oneself or to others, such as stakeholders or regulatory agencies.

Donors

Individuals or organizations that voluntarily give resources such as money, goods, or time to support a cause.

Nonprofit Charters

Legal documents that establish a nonprofit organization, outlining its purpose, governing structure, and operational guidelines.

Government Entity

An organization or agency that is part of the government sector, operating under legal and regulatory frameworks to perform public purposes.