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The accounting cycle is a logical sequence of procedures used by businesses to record transactions and prepare financial statements. The cycle begins with a transaction and ends with the closing of the books and is repeated each reporting period.

There are several steps of the accounting cycle that are completed throughout the reporting period as a transaction occurs. First you identify the transaction or other event. Next you journalize the transaction and then post to the ledger. Other steps of the cycle are only performed at the end of the reporting period. First you prepare a trial balance to make sure that debits equal credits. Next you prepare adjusting entries, post them to the ledger accounts and prepare the adjusted trial balance. Once this has been done you can then prepare the financial statements. The step is followed by preparing closing journal entries, preparing an after-closing trial balance and then preparing the reversing journal entries.

In my......

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Approximate Word Count: 333
Approximate Pages: 2 (250 words per double-spaced page)

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