What is the accounting cycle

The most important 8 step process for a business

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step 1 analyzes transaction

a business paper from witch information is obtained for a journal entry

step 2

journalize transactions

step 3 posting

there are 5 steps to posting

1. Write the date in the ledger

2. Record the journal page number in the post reference column of the ledger

3. Record the debit or credit in the ledger

4. calculate the new balance in the ledger

5. record the ledger account number in the post reference column of the journal

step 4&5

prepare a worksheet and prepare financial statements

step 6&7

journalize adjusting and closing entries


post adjusting and closing entries