Accounting Cycle

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1. Analyze Transactions

Accounting process of examining a transaction and entering it into an appropriate accounts

2. Journalize

Recording transactions in a journal

3. Post

Transferring information from a journal entry to a ledger account

4. Prepare worksheet

A columnar accounting form used to summarize the general ledger information needed to prepare financial statements

5. Prepare Financial Statement

Financial reports that summarize the financial condition and operations of a business

6. Journalize Adjusting and Close Entries

Journal entries recorded to update general ledger accounts at the end of a fiscal period and Journal entries used to prepare temporary accounts for a new fiscal period

7. Post Adjusting and Closing Entries

Transferring information from a journal entry to a ledger account, journal entries recorded to update general ledger accounts at the end of a fiscal period and Journal entries used to prepare temporary accounts for a new fiscal period

8. Prepare Post-closing Trial Balance


Trail balance prepared after closing entries have been posted to respective Ledger account. Its objective is to test whether total debits equal total credits for all real (permanent) accounts, prior to beginning a new accounting period