Question

What is a step in the accounting cycle?

Forecasting sales

Determining sales markets

Summarizing the effects of transactions

Making five-year projections

Answer 1

A step in the accounting cycle is **summarizing the effects of transactions**. This step typically involves recording financial transactions, posting them to the appropriate accounts, and then preparing financial statements that reflect the company's financial status for a specific period. The other options listed, such as forecasting sales and making projections, are more related to financial planning and analysis rather than the traditional accounting cycle.