The financial accounting process has been shown to consist of five steps. True False

Question:

The financial accounting process has been shown to consist of five steps.

True

False

Financial Accounting cycle:

The financial accounting cycle is a process through which the companies record, summarize, process, report and store the pool of transactions resulting from business operations in a period of time.

Answer and Explanation:

False

There are 8 steps in the financial accounting process

Step 1: Analyze Transactions

Step 2: Journalize

Step 3: Post

Step 4: Prepare Worksheet

Step 5: Prepare Financial Statements

Step 6: Journalize Adjusting and closing entries

Step 7: Post Adjusting and Closing Entries

Step 8: Prepare Post-Closing Trial Balance


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Role of Financial Accounting in Management & Decision Making

from Accounting 201: Intermediate Accounting I

Chapter 12 / Lesson 1
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