What indicates a complete accounting cycle?

The completion of an accounting cycle is indicated by the process of post-closing entries. The accounting cycle consists of a series of steps that begin with recording transactions and end with closing the accounts at the end of the period. Post-closing entries are the final entries made at the conclusion of the accounting cycle. They close temporary accounts, such as revenues and expenses, ensuring that their balances are reset to zero for the next accounting period. This final step is essential as it signifies that all necessary transactions have been recorded, accounted for, and reported, effectively completing the cycle.

The other options each represent important activities within the accounting cycle but do not signify its completion. Preparing the trial balance reflects the accuracy of the accounts before adjustments are made. Issuing financial statements is a critical step in reporting but occurs before closing accounts. Assessing cash flow is an ongoing activity that can happen at any point in the accounting cycle and is not specifically tied to its completion. Therefore, post-closing entries are the definitive action that indicates that all steps in the accounting cycle have been completed.