What does the accounting cycle represent?

The process of identifying, measuring, and communicating financial information

The correct answer is option 3- The process of identifying, measuring, and communicating financial information.

The manual system of accounting is traditionally most popular method of keeping records of financial transactions of an organisation. Financial statements are the end products of the accounting process, which are prepared in accordance with Generally Accepted Accounting Principles (GAAP). The accounting cycle means the processes involved in identifying, measuring and communicating the information.