Question

What part of the accounting cycle checks to see that the amount of money the business is spending is equal to the amount of income the business is generating?

(1 point)
Responses

worksheet

worksheet

trial balance

trial balance

general ledger

general ledger

financial statement

Answer 1

The part of the accounting cycle that checks to see that the amount of money the business is spending is equal to the amount of income the business is generating is the **financial statement**. Financial statements, such as the income statement, summarize revenues and expenses to evaluate the financial performance of the business.