The Sequence of Steps Used to Record and Report Business

question 14

Multiple Choice

The sequence of steps used to record and report business transactions is referred to as:

• A)transaction analysis.
• B)the accounting cycle.
• C)journalizing.
• D)the accounting period.

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Definitions:

Cost Of Goods Sold

The total of all costs used to create a product or service, which has been sold.

Beginning Inventory

The total worth of a company's inventory at the beginning of a financial period.

Purchases

Items bought or acquired by a company for various purposes, primarily for resale in the course of business.

Cost Of Goods Available

The total cost of inventory available for sale during a period, calculated as beginning inventory plus purchases minus ending inventory.