Fundamentals of ABM1

Fundamentals of ABM1

What is an Accounting Cycle?

Accounting Cycle

-it is a series of recurring accounting steps or n processes within one span accounting period.

Steps

1. Analyzing business transactions from source documents

2. Journalizing the business transactions

3. Posting Journal entries to the ledger

4. Preparing trial balance

5. Journalizing and posting adjusting journal entries

Steps

6. Preparing adjusted trial balance

7. Preparing financial statements

8. Journalizing and posting closing journal entries

9. Preparing post closing trial balance

10. Journalizing and posting reversing journal entries