Commercial Applications
Accounting cycle ends with the ……………
- Recording of transactions in journal
- Preparing income statement
- Posting entries in ledger
- Preparation of balance sheet
GAAP
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Answer
Preparation of balance sheet
Reason — The accounting cycle begins with recording of transactions in the journal and ends with the preparation of the Balance Sheet. The balances appearing in the Balance Sheet are then transferred to the new journal of the next year, and the cycle continues.
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