Question

question 6 (2 points)
based on the accountings foundations video on the accounting cycle, why do we use the accounting cycle? fill in the missing words.
comparability

1. it provides us with a process to execute ______

accurate

1. to provide us with more ______ financial statements

representation

1. it provides us with a good ______ of financial activities

consistently

1. it ensures every company’s statements are consistent for ______

Explanation:

1. The accounting cycle is a process to execute accounting tasks consistently (so the first dropdown matches with "consistently").
2. The cycle aims to produce accurate financial statements (second dropdown: "accurate").
3. It gives a good representation of financial activities (third dropdown: "representation").
4. Consistent statements enable comparability (for analyzing across companies; fourth dropdown: "comparability").

Answer:

1. consistently
2. accurate
3. representation
4. comparability