Nine Steps of the Accounting Cycle

Nine Steps of the Accounting Cycle XACC/280 06/05/2011 A jazz acconting pass implies nine steps that represent the entire cover. The report process nine stes are: 1- Analizing both in all business transactions. Entitles the analizing and organization of all transactions of the business utilizing the calculate 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 employment of the transaction, the accounts and amounts to be debited and credited, and a brief bill of the transaction. 3- Post to leger accounts. This process is the transfering the journal entries into a account book account. 4- chip in trail sense of equilibrium. A trial symmetricalness is a list of accounts and their equilibrizes at a given time. The main try of the trail balance is to check that the debits and credits are jolt amounts at the stop over of deporting. 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 stoppage, Which accoumulated the entries or the period figures in preparation for the accounting of a whole monetary category. 6- originate an adjusted trial balance. An adjusted trial balance is a listing of all the account titles and balances contained in the oecumenical ledger after the adjusting entries for an accounting period have been post to the accounts. 7- Prepare financial statements; income st! atements, 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 necessitate to view a full essay, order it on our website: OrderEssay.net

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