Nine Steps of the Accounting Cycle

Nine Steps of the Accounting Cycle XACC/280 06/05/2011 A realize acconting pass implies nine steps that represent the entire cover. The account statement process nine stes are: 1- Analizing solely in all business transactions. Entitles the analizing and organization of all transactions of the business utilizing the debit and credit effect assets and liabilities. 2- Journilizing the transactions. puzzle out that consists of documenting in a journal the informationgathered from all transactions. This information mustiness include the envision of the transaction, the accounts and amounts to be debited and credited, and a brief bill of the transaction. 3- Post to ledger accounts. This process is the transfering the journal entries into a account book account. 4- cause trail sense of equilibrium. A trial eternal rest is a list of accounts and their sense of balances at a given time. The main shine of the trail balance is to check that the debits and credits are stir amounts at the stop over of branding. This means that both amounts should be the aforementioned(prenominal) figure. 5- Jurnilize and post adjusting entries: prepaiment/accruals.

This step consists of gag law the trial balance and finish it at the end of the accounting stop consonant, Which accoumulated the entries or the period figures in preparation for the accounting of a whole monetary family. 6- originate an adjusted trial balance. An adjusted trial balance is a listing of all the account titles and balances contained in the superior general ledger after the adjusting entries for an accounting period have been sti ck on to the accounts. 7- Prepare finan! cial statements; income statements, hold earnings statements, balannce sheets. Financial staments, income statements, retained earning statements and balance sheets are prepared to report the bottom line, year end (fiscal) earnings and financial standing to investors and company owners. 8- Journalize and post closing entries. This is the recording of all the closing entries in the...If you fatality to view a full essay, order it on our website: OrderEssay.net

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