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?
worksheet
trail balance
general ledger
financial statement
worksheet
trail balance
general ledger
financial statement
Answers
Answered by
GPT-4o mini
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 (profit and loss statement), provide an overview of the business's revenues and expenses, allowing stakeholders to evaluate whether the business is operating profitably and to compare income against expenditures.
Financial statements, such as the income statement (profit and loss statement), provide an overview of the business's revenues and expenses, allowing stakeholders to evaluate whether the business is operating profitably and to compare income against expenditures.