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    Eight steps for the accounting cycle

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    What are the eight steps in the accounting cycle and how do they affect the financial statements? What happens if one is missing?

    © BrainMass Inc. brainmass.com October 10, 2019, 6:34 am ad1c9bdddf

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    The steps in the accounting cycle include:
    1. record the transaction
    2. create a journal entry
    3. post the journal entry to the individual accounts
    4. prepare the trial balance of the balances in the accounts
    5. review for adjustments needed
    6. propose and post adjusting journal entries
    7. create financial statements from adjusted trial balance
    8. close out the nominal accounts to retained earnings

    Each step provides a ...

    Solution Summary

    Your tutorial is 210 words plus a reference, giving the steps and the consequences if one is missed.