Saturday, December 20, 2008

Accounting Cycle

The series of accounting procedures in a specified period is known as the accounting cycle.

The following is a list of the steps to follow in the accounting cycle.

  1. Start Accounting Cycle
  2. Analyze Accounting Transactions
  3. Post Accounting Transactions
  4. Prepare unadjusted trial balance
  5. Adjust
  6. Prepare adjusted trial balance
  7. Prepare financial statements
  8. Close
  9. Prepare post-closing trial balance
  10. Repeat Accounting Cycle

The accounting cycle is the method accountants use to keep track of the financial situation of a company. The financial reports will be correct and accurate if the accounts have been analyzed correctly, events have been posted correctly and the accounting equation remains balanced.

Overall, the most important result of completing the accounting cycle is the production of financial statements.

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The information on this site is for informational purposes only and should not be used as a substitute for the professional advice of an accountant, tax advisor, attorney, or other professional.