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 6&7
journalize adjusting and closing entries
post adjusting and closing entries
step 8
the post closeing trial balance is the end of the accounting cycle
accounts
The main assets accounts are cash, supplies, prepaid insurance, and accounts rec.
The liabilities are accounts payable and sales and owners equity is capitol
The accounting equation
Assets = liabilities + owners equity