Question

Accounting begins with the identification of transactions and ends with the preparation of ________________ Statements.

Answer 1

ACCOUNTING ENDS WITH THE PREPARATION OF ✓✓FINANCIAL STATEMENT✓✓

Answer 2

Accounting begins with the identification of transactions and ends with the preparation of financial statements.

The accounting process is a series of activities that begins with a transaction and ends with the closing of the books because this process is repeated each reporting period, it is referred to as the accounting cycles.

To prepare the financial statements include:

• Income statement: prepared from the revenue, expenses, gains and losses.
• Balance sheet: prepared from the assets, liabilities, and equity accounts.
• Statement of retained earnings: prepared from net income and dividend information.
• Cash flow statement: derived from the other financial statements using either the direct or indirect method.