What is the accounting cycle?
The accounting cycle is often described as a process that includes the following steps: identifying, collecting and analyzing documents and transactions, recording the transactions in journals, posting the journalized amounts to accounts in the general and subsidiary ledgers, preparing an unadjusted trial balance, perhaps preparing a worksheet, determining and recording adjusting entries, preparing an adjusted trial balance, preparing the financial statements, recording and posting closing entries, preparing a post-closing trial balance, and perhaps recording reversing entries.
Cycle and steps seem to be a carryover from the days of manual bookkeeping and accounting when transactions were first written into journals. In a separate step the amounts in the journal were posted to accounts. At the end of each month, the remaining steps had to take place in order to get the monthly, manually-prepared financial statements.
Today, most companies use accounting software that processes many of these steps simultaneously. The speed and accuracy of the software reduces the accountant’s need for a worksheet containing the unadjusted trial balance, adjusting entries, and the adjusted trial balance. The accountant can enter the adjusting entries into the software and can obtain the complete financial statements by simply selecting the reports from a menu. After reviewing the financial statements, the accountant can make additional adjustments and almost immediately obtain the revised reports. The software will also prepare, record, and post the closing entries.
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Its a very usefull websites for the learners. but i could’nt find the answers of the questions in the Part 2 of the Cash flow statment. i think there is some errors in the page !
anyways
best of luch
nabeel
Pakistan, Lahore
Thanks for the feedback, the errors have been fixed.
You can view the answers in Part 2 by placing your cursor over the word “Answer”.
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sir,
can i a good explaination for journals,contra voucher,ledger,credit debit note,and balance sheet with example
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From
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From
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Bajafar
Yemen
sir,
i see all meanings, it is good
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2). corporation.
3).enterprise ,,entity.
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Jaunpur(UP)
INDIA
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Dear Ms/Sir,
Would you please posting all the accounting funtion for the cycle account with example one exercise is more better.
Best Regards,
Rith.
…i need more info……….for our lesson.the cycle……….a figure…
What is general jounal
It a good web
What are the typical items on the month end close checklist?
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Bengalore
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Dears,
I found this web site very interesting but informations about accounting cycle is not sufficient.
thanks
Best reagrds
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