As a First Step in the Accounting Cycle, ________ Involves

question 116

Multiple Choice

As a first step in the accounting cycle, ________ involves the recording of business transactions.

• A) marketing
• B) bookkeeping
• C) auditing
• D) economics

---

Definitions:

Consolidation Worksheet

A tool used in preparing consolidated financial statements, allowing a company to adjust and eliminate the transactions among its controlled entities.

Plant

In terms of fixed assets, it refers to the buildings, machinery, equipment, and property used in the operations of a business.

Inventories

Items held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process.

Useful Life

The period over which an asset is expected to be usable by an entity, affecting its depreciation or amortization.