The Steps in the Accounting Cycle Do Not Need to Be

question 93

True/False

The steps in the accounting cycle do not need to be followed in the order stated. Monthly financial statements can be prepared with a good amount of accuracy, prior to posting in the ledger or preparing the trail balance.

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Definitions:

Price Per Unit

The cost assigned to a single unit of a product or service, indicating how much a consumer will pay for one unit.

Payable

Amounts owed by a company to its creditors or suppliers that are due to be paid within the near future.

Inventory On Credit

A business practice where goods are acquired without immediate payment, with the understanding that payment will be made at a later date.

Receivables Balance

The total amount of money owed to a company for goods or services delivered or used but not yet paid for by customers.