Which one of the following statements concerning the accounting cycle is incorrect?

Question

The accounting cycle includes journalizing transactions and posting to ledger accounts.

The accounting cycle includes only one optional step.

The steps in the accounting cycle are performed in sequence.

The steps in the accounting cycle are repeated in each accounting period

Answer 1

this is the incorrect statement:

"The accounting cycle includes only one optional step"

Answer 2

The accounting cycle includes only one optional step.

The accounting cycle begins with the analysis of transactions recorded on source documents such as invoices and checks; it ends with the completion of a post-closing trial balance. This cycle consists of the following steps:



1. Analyze and journalize transactions.

2. Post the journal entries to the general ledger accounts.

3. Prepare a trial balance.

4. Journalize and post the adjusting entries.

5. Prepare an adjusted trial balance.

6. Prepare financial statements.

7. Journalize and post the closing entries.

8. Prepare a post-closing trial balance.