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.
What is a step in the accounting cycle?
Forecasting sales
Determining sales markets
Summarizing the effects of transactions
Making five-year projections
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