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    Steps in the Accounting Cycle

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    What are the steps in the accounting cycles? Please list and explain.

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    Steps in the accounting cycle:

    1. Identify transactions -

    The first step is to identify the event as a transaction, and to generate the appropriate documents for that transaction or set of transactions. Knowing what constitutes a transaction in accounting the key to this step. After the transactions have all been gathered, the accountant can move on to performing the second step.

    2. Analyze the transactions -

    Determine the transaction amount, which accounts are affected by the transaction, and in what direction the transactions are to occur. By identifying the necessary information from analyzing each ...

    Solution Summary

    The solution discusses the steps in the accounting cycle.