The Nine Steps of the Accounting Cycle

Part 1: The Nine Steps of the Accounting Cycle

The Nine Steps of the Accounting Cycle are Analyzing Business Transactions, Journalizing Transactions, Posting to the ledger, Preparing a trail balance, Journalize and Post adjusting Entries, Prepare an adjusted trial balance, Prepare Financial Statements, Journalize and Post Closing Entries, and Prepare a Post Closing Trial Balance. To Journalize the transactions that are enter into the journal. By Journalizing the adjusted entries this enables the revenue recognition and matching principles to be followed. The adjusted trial balance shows that the debits and credits are balance after the adjustments are done. Journalizing and Posting the Closing entries closes the temporary accounts. The Post Closing Trial Balance shows that the account balances that are carried to the next accounting period are equal.

Part 2: Financial Statements

The concept that I learned are the Multi-Step Format for an Income Statement. This format allows for easy calculation of affects of different amounts and percentages affecting the accounts. Instead of just displaying the bottom line like the single step format , this format can quickly show how different condition will affect certain aspects of operating conditions.

Part 1: The Nine Steps of the Accounting Cycle

The Nine Steps of the Accounting Cycle are Analyzing Business Transactions, Journalizing Transactions, Posting to the ledger, Preparing a trail balance, Journalize and Post adjusting Entries, Prepare an adjusted trial balance, Prepare Financial Statements, Journalize and Post Closing Entries, and Prepare a Post Closing Trial Balance. To Journalize the transactions that are enter into the journal. By Journalizing the adjusted entries this enables the revenue recognition and matching principles to be followed. The adjusted trial balance shows that the debits and credits are balance after the adjustments are done. Journalizing and Posting the Closing entries closes the temporary accounts. The Post Closing Trial Balance shows that the account balances that are carried to the next accounting period are equal.

Part 2: Financial Statements

The concept that I learned are the Multi-Step Format for an Income Statement. This format allows for easy calculation of affects of different amounts and percentages affecting the accounts. Instead of just displaying the bottom line like the single step format , this format can quickly show how different condition will affect certain aspects of operating conditions.

Part 1: The Nine Steps of the Accounting Cycle

The Nine Steps of the Accounting Cycle are Analyzing Business