Eight steps are as follows:
must have staff who prepare financial statements on a monthly, quarterly, and/or annual basis. To meet these primary objectives, a series of steps is required. Collectively these steps are known as the accounting cycle.
prepare a trial balance
accounting is the systematic representation
There are four basic steps to the accounting cycle and transaction analysis. They steps are to analyze business events, record the effect of these events, summarize the effects of the events, and to prepare the reports on that subject.
Accounting cycle comprises all of the accounting activities, from the recording of transaction up to the preparation of financial statements, which are repeatedly performed in every accounting period.
9 steps
9
must have staff who prepare financial statements on a monthly, quarterly, and/or annual basis. To meet these primary objectives, a series of steps is required. Collectively these steps are known as the accounting cycle.
prepare a trial balance
Series of steps in recording an accounting event from the time a transaction occurs to its reflection in the financial statements; also called bookkeeping cycle. The order of the steps in the accounting cycle are: recording in the journal, posting to the ledger, preparing a trial balance, and preparing the financial statements.Its is an cycle because when the financial statements are made at the end of the year and after the closing of the financial year u have to start ur business again for the new financial year. So everything u do repeats again. Hence, it is a cycle. Hope it answered the question.
accounting is the systematic representation
There are four basic steps to the accounting cycle and transaction analysis. They steps are to analyze business events, record the effect of these events, summarize the effects of the events, and to prepare the reports on that subject.
Accounting cycle comprises all of the accounting activities, from the recording of transaction up to the preparation of financial statements, which are repeatedly performed in every accounting period.
The sequence of activity which are followed in an organization,where accounting is pratise.the sequence of accounting procedure used to record classify and summarize accounting information is known as ACCOUNTING CYCLE/PROCESS.
Some of the steps may change. A merchandising company sells products, therefore the will have to consider the cost of goods sold, etc to find their net profit. A service company provides a service, therefore they won't have a cost of goods sold account, but instead figure supply expense. For the most part the steps will be either the same or very similar, however, accounts used will change.
Accounting cycle comprises all of the accounting activities, from the recording of transaction up to the preparation of financial statements, which are repeatedly performed in every accounting period.
Base transactions, journalise, post to accounts, trial balance, adjustments, adjusted trial balance, financial statements.