Accounting cycle

analyzes transactions

this is an accounting process of examining a transaction and entering it into the appropriate account.

financial statement

summary report showing how a business has used funds entrusted to the company by its shareholders and shows the current financial position of the company. financial statement shows the balance sheet, income statement, and cash flow.

adjusting/closing entries

adjusting entries-bookkeeping entries posted at the end of an accounting period. these also show expenses and revenue. adjusting entries are also able to correct entries that are accurately correct. a closing entry is when a temporary account is reset back to a balance of zero after the fiscal period id over.

post adjusting/closing entries

posting adjusting entries is when you show the specific account in the ledger and what is in the account. posting a closing entry is when you take the amount out of the journal account and post it into the respectable account.

post-closing trial balance

this objective for a post closing trial balance is to make sure that all debits and credits equal each other in the permanent accounts prior to beginning a new fiscal period.