Respuesta :
Answer:
Accounting Cycle: It is a process through which companies record it's financial transactions of the whole period. It total has 9 Steps.
Explanation:
What is the first step?
- The first step in accounting cycle is related to collecting data of the financial transactions of the company and analyzing it which includes, receipts, statements from banks, invoices of sales and purchases.
Are any steps optional?
Yes, there are 2 optional steps:
- Reversing entries.
- Correcting entries
Which steps are completed throughout the period?
The steps which are conducted throughout the periods are:
- Making Journal Entries.
- Posting into Ledger Accounts.
- Unadjusted and adjusted Trial Balance.
- Adjusting Entries.
What is the last step in the accounting cycle?
The last step is to Prepare a post-closing trial balance.
After closing the accounting period, a trial balance is prepared in which the balance of assets, liabilities and equities are calculated and they are transferred into next accounting period.
Answer:
The accounting cycle is a collective process of identifying, analyzing, and recording the accounting events of a company. There are currently Ten steps in an accounting cycle.
Explanation:
1. The first step is Analyzing and classifying transactions. The purpose is to identify how each event affects the financial position of a business.
2. The two optional steps are
- Correcting entries
- Reversing entries
3. The most important steps reflected throughout the period is
- Making Journal Entries.
- Adjusting Entries.
- Posting into Ledger Accounts
- Un-adjusted and adjusted Trial Balance
4. It is at the end of the period that you prepare financial statements
5. The last step is recording reversing entries. It helps to prevent incidences of double counting in the preceding period.
