Nine Steps of the Accounting Cycle

Nine Steps of the Accounting Cycle XACC/280 06/05/2011 A complete acconting pass implies nine steps that represent the entire cover. The write up process nine stes are: 1- Analizing in all in all business transactions. Entitles the analizing and organization of all transactions of the business utilizing the account 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 insure of the transaction, the accounts and amounts to be debited and credited, and a brief bill of the transaction. 3- Post to al-Quran accounts. This process is the transfering the journal entries into a account book account. 4- act trail sense of equilibrium. A trial remnant is a list of accounts and their ends at a given time. The main resign of the trail balance is to check that the debits and credits are seismic disturbance amounts at the stop over of military positioning. 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 diaphragm, Which accoumulated the entries or the period figures in preparation for the accounting of a whole pecuniary course. 6- originate an adjusted trial balance. An adjusted trial balance is a listing of all the account titles and balances contained in the global ledger after the adjusting entries for an accounting period have been post to t! he accounts. 7- Prepare financial statements; income statements, retain 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 compliments to view a full essay, order it on our website: BestEssayCheap.com

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