Accounting Cycle
Accounting Cycle
Learning Objective:
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Define and explain accounting cycle.
Accounting cycle refers to a complete sequence of accounting procedures which are required to be repeated in same order during each accounting period. Accounting cycle includes:
Recording:
First, all transactions should be recorded in the journal or books of original entry known as subsidiary books as and when they take place.
Classifying:
All entries in the journal of books of original entry should be posted to the appropriate ledger accounts to find out at a glance the total effect of all such transactions in a particular account.
Summarising:
Last stage is to prepare the trial balance and final accounts with a view to ascertaining the profit or loss made during a trading period and the financial position of the business of a particular date.
Accounting Cycle
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- Definition and Explanation of Accounting
- Branches of Accounting
- Functions of Accounting
- Parties Interested in Accounting Information
- Systems of Accounting – Cash System of Accounting and Accrual System of Accounting
- Bookkeeping Vs. Accounting/Difference Between Bookkeeping and Accounting
- Accounting Cycle
Learning Objective:
Accounting cycle refers to a complete sequence of accounting procedures which are required to be repeated in same order during each accounting period. Accounting cycle includes: Recording:First, all transactions should be recorded in the journal or books of original entry known as subsidiary books as and when they take place. Classifying:All entries in the journal of books of original entry should be posted to the appropriate ledger accounts to find out at a glance the total effect of all such transactions in a particular account. Summarising:Last stage is to prepare the trial balance and final accounts with a view to ascertaining the profit or loss made during a trading period and the financial position of the business of a particular date.
Accounting Cycle
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