The Accounting Cycle Quiz

What is the first step in the accounting cycle?

• Publish the story

• Capture activity of a business

• Organize into groups and edit

• Archive

How is the activity of a business captured in the accounting cycle?

• By posting journal entries

• By closing the books

• By creating financial statements

• With a journal entry

What does 'organize into groups and edit' involve in the accounting cycle?

• Conducting an audit

• Preparing tax returns

• Organizing information into accounts

• Creating a budget

What is the purpose of publishing the story in the accounting cycle?

• To conduct an audit

• To generate financial statements

• To create a budget

• To prepare the books for the next period

What is the final step in the accounting cycle?

• Capture activity of a business

• Organize into groups and edit

• Publish the story

• Archive

What does the 'archive' step involve in the accounting cycle?

• Closing the process to prepare the books for the next period

• Creating a budget

• Generating financial statements

• Conducting an audit

Which of the following is NOT a step in the accounting cycle?

• Capture activity of a business

• Organize into groups and edit

• Publish the story

• Conduct an audit

What is the main content of the 'publish the story' step?

• Budgets

• Financial statements

• Tax returns

• Journal entries

Which step involves posting journal entries?

• Archive

• Capture activity of a business

• Publish the story

• Organize into groups and edit

What is the purpose of the accounting cycle?

• To prepare tax returns

• To organize and report financial information

• To conduct audits

• To create budgets