Which activity is part of the accounting process?

Analyzing financial data is a fundamental component of the accounting process. This activity involves examining financial statements, transactions, and other financial records to assess an organization's financial performance and health. By analyzing this data, accountants can identify trends, pinpoint areas for improvement, and support decision-making for the business. Essentially, this analysis aids in creating accurate reports, ensuring compliance with financial regulations, and ultimately helps in strategic planning. It directly contributes to maintaining the integrity of financial reporting, which is vital for stakeholders such as investors, management, and regulatory authorities.