Commercial Applications
Answer
All of these
Reason — The accounting cycle consists of recording transactions in the journal, posting entries in the ledger, preparing the trial balance, preparing the income statement and balance sheet, and opening new books in the next year. Therefore, journal, ledger and trial balance are all stages of the accounting cycle.
Related Questions
Which of the following is/are correct statement(s)?
Statement 1: The Money Measurement Concept allows for the recording of all significant events, irrespective of their monetary value.
Statement 2: The Dual Aspect Principle ensures that every financial transaction is recorded twice in the accounting records.
- Only Statement 1 is correct
- Only Statement 2 is correct
- Both Statements 1 and 2 are correct
- Both Statements 1 and 2 are false
Which of these is not a purpose of financial recordings?
- Ascertaining financial position
- Making accounting information available to stakeholders
- Journal
- None of these
A company decides to change its method of depreciation from the straight-line method to the reducing balance method without disclosing this change in the financial statements. Which principle has been violated?
- Matching Principle
- Consistency Principle
- Dual Aspect Principle
- Going Concern Concept
It is the second stage and provides conclusions.
- Accounting
- Book keeping
- Book maintaining
- Book recording