Accounting cycle

Accounting Cycle is the process of recording, classifying, summarizing and analyzing the whole transaction in a specified manner. Accounting cycle consists of following steps which are recording transactions in Journal then post them into ledger accounts, then an unadjusted trial balance prepared after which adjusting entries prepared at the end of the period then adjusted trial balance prepared which leads to the preparation of financial statements. Next step is to pass closing entries through closing temporary accounts and after which post-closing trial balance prepared. Accounting cycle is beneficial for the company in the preparation of balance sheet, cash flow statements etc.

Accounting Cycle

Understanding an accounting cycle can be one of the most interesting things in the basic accounting. The workflow of accounting is always circular so it is recommended to understand the accounting cycle to implement effectively at your own business. The first step in this

Accounting Cycle

Accounting Cycle Learning Objective: 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