The Accounting Cycle Refers to the Sequence of Steps Used

question 93

True/False

The accounting cycle refers to the sequence of steps used in preparing the work sheet.

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Definitions:

Operating Activities

Business actions that are directly related to the production, sale, and delivery of products or services, which are reflected in the company's income and cash flow statements.

Cash Basis

A bookkeeping approach that registers income and expenses at the time cash is exchanged, rather than when they are accrued.

Direct Method

An accounting practice of allocating support department costs directly to producing departments without consideration for interdepartmental services.

Sales Adjusted

Adjustments made to recorded sales figures for returns, allowances, or discounts to determine the actual net sales amount.