Accounting cycle is a continuous process of accumulating, summarizing and reporting financial information.
The accounting cycle makes accounting easier, breaking your bookkeeping down into smaller tasks. It helps you see what you need to accomplish next.
The accounting cycle is a sequence of steps in the collection, processing, and presentation of accounting information. It is made up of the following steps:
1.) Identifying and analyzing business transactions and events
2.) Recording transactions in the journals (journalizing)
3.) Posting journal entries to the ledger (posting)
4.) Preparing an unadjusted trial balance
5.) Recording and posting adjusting entries
6.) Preparing an adjusted trial balance
7.) Preparing the financial statements (income statement, changes in equity, balance sheet, cash flow)
8.) Recording and posting closing entries
9)Preparing a post-closing trial balance
10.) Reversing entries may be prepared at the beginning of the new accounting period to enable a smoother recording process. In this step, some adjusting entries are simply reversed. Nevertheless, reversing entries are optional.
Familiarize the accounting cycle ^_^
Pwede mo din i-me- memorize kung gusto mo hihi walang pilitan dito, choice mo to
Here is the summary if you want to memorize
ACCOUNTING CYCLE:
1.) Identifying and analyzing business transactions and events
2.) Recording transactions in the journals
3.) Posting journal entries to the ledger
4.) Preparing an unadjusted trial balance
5.) Recording and posting adjusting entries
6.) Preparing an adjusted trial balance
7.) Preparing the financial statements
8.) Recording and posting closing entries
9.) Preparing a post-closing trial balance
10.) Reversing entries
YOU ARE READING
ACCOUNTING
RandomMaybe you are here because you're an ABM Student. Grade 11 or 12? This may contained a detailed notes in FUNDAMENTALS OF ACCOUNTANCY BUSINESS MANAGEMENT 1 (FABM1).
