_________ is the first phase of accounting cycle?
Correct answer: A. Identifying an economic event or transaction
- A. Identifying an economic event or transaction
- B. Preparing journals
- C. Posting entries to ledger accounts
- D. Making decisions about business
Explanation
The accounting cycle begins when an economic event or transaction is identified and evaluated for its financial effect. Journalizing and posting occur only after this initial identification.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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