The summarizing phase of the accounting cycle ends with the preparation of the financial statements.Select one:TrueFalse

Answer

The statement is True.

Explanation

In the accounting cycle, the summarizing phase consists of processing all financial transactions and gathering data to prepare financial statements, which are crucial for evaluating the financial health of an organization. This involves adjusting the entries, closing the books, and preparing the final accounts. The primary financial statements produced during this phase include the balance sheet, income statement, and statement of cash flows. These documents provide stakeholders with important information regarding a company's performance and financial position over a specific period. Thus, the summarizing phase indeed concludes with the preparation of these financial statements, making the statement accurate.