ACCOUNTING CYCLE




What Does Accounting Cycle Mean?
The name given to the collective process of recording and processing the accounting events of a company. The series of steps begin when a transaction occurs and end with its inclusion in the financial statements. The eight steps of the accounting cycle are:
  1. Putting transactions into the general journal.
  2. Posting entries to the general ledger.
  3. Preparing an unadjusted trial balance.
  4. Adjusting entries appropriately.
  5. Preparing an adjusted trial balance.
  6. Organizing the accounts into the financial statements.
  7. Closing the books.
  8. Preparing a post-closing trial balance to check the accounts.
Also known as “bookkeeping cycle”.

Comments

  1. Shadhin Kangal10 February 2017 at 08:37

    Accounting cycle means the repetition of a complete sequence of accounting procedures in appropriate order during each accounting period.

    The term indicates that these procedures must be repeated continuously to enable the business to prepare new up-to-date financial statements at reasonable intervals.

    ReplyDelete
  2. Unknown4 January 2019 at 02:19

    Our Bookkeeping administrations are appropriate for business all things considered and little and medium undertakings for coastal and seaward accounting and bookkeeping administrations in Pakistan.
    bookkeeping services in lahore
    accounting services in Pakistan

    ReplyDelete
  3. lunajohnson27 April 2020 at 04:49

    It is really a great work and the way in which you are sharing the knowledge is excellent. Thanks for your informative articlechartered accountants in Dubai
    audit services in Dubai
    Bookkeeping and Accounting firms in Dubai
    vat registration in Dubai

    ReplyDelete
  4. Aaaaccounting4 May 2020 at 23:54

    Thanks for a wonderful share. Your article has proved your hard work and experience you have got in this field. Brilliant .i love it reading.
    Accounting Services in London

    ReplyDelete
  5. Dina g Johnson6 May 2020 at 03:39

    I read your blog about Accounting.Such a very helpful info in this blog.please visit here :

    chartered accountants in Dubai
    audit services in Dubai
    Bookkeeping and Accounting firms in Dubai
    vat registration in Dubai

    ReplyDelete
  6. Unknown22 March 2021 at 23:34

    Nice post! This is very informative and knowledgeable article that's way i would like to say thanks for your efforts you have made in this post
    Accounting Services in Dubai | Chartered Accountant in Dubai | Accountants in Dubai

    ReplyDelete
  7. PayrollOutsourcingCompanies19 August 2021 at 00:02

    Nice post! This post gives a better idea. Thanks for the useful information about account payable. I hope you will share some more content. It will be helpful for people those who are looking for account payable jobs. We also provide a Accounts Payable And Receivable.

    ReplyDelete
  8. Synergy Gulf 14 February 2024 at 04:36

    Thank you for providing such comprehensive information about the accounting cycle. Understanding the steps involved is crucial for anyone involved in book keeping services . Your explanation clarifies the process and highlights the importance of accurate financial record-keeping for businesses.

    ReplyDelete

Post a Comment

Popular posts from this blog

IAS I6 Property, Plant and Equipment

http://hi2sales.com Property, plant and equipment are tangible items that a: are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes and  b: are expected to be used during more than one period. The cost of an item of property, plant and equipment shall be recognised as an asset if, and only if:  a: it is probable that future economic benefits associated with the item will flow to the entity; and  b: the cost of the item can be measured reliably. Measurement at recognition: An item of property, plant and equipment that qualifies for recognition as an asset shall be measured at its cost.         The cost of an item of property, plant and equipment is the cash price equivalent at the recognition date.             If payment is deferred beyond normal credit terms, the difference between the cash price equivalent and the total payment i...
Read more

IAS 12 INCOME TAXES

Graham Holt unravels the deferred tax complexities and latest developments in tax accounting Studying this technical article and answering the related questions can count towards your verifiable CPD if you are following the unit route to CPD and the content is relevant to your learning and development needs. One hour of learning equates to one unit of CPD. We'd suggest that you use this as a guide when allocating yourself CPD units. IAS 12,  Income Taxes , deals with taxes on income, both current tax and deferred tax. Income tax accounting is complex, and preparers and users find some aspects difficult to understand and apply. These difficulties arise from exceptions to the principles in the current standard, and from areas where the accounting does not reflect the economics of the transactions. The current tax expense for a period is based on the taxable and deductible amounts that will be shown on the tax return for the current year. Current tax assets and liabilitie...
Read more