Purchase Solution

The steps in the accounting cycle

Not what you're looking for?

Ask Custom Question

What are the steps in completing the accounting cycle? How do the different steps impact the financial statements? What is the impact on the financial statements of missing a step when completing the accounting cycle? Why is the accounting cycle important to the accounting process?

Purchase this Solution
Solution Summary

The nine steps of the accounting cycle are explained including the purpose of each and who might perform each step.

Solution Preview

The accounting cycle, normally completed each month in most businesses, consists of the following steps:

1. Record transactions which include cash receipts, cash disbursements, purchases, sales and other general journal entries.

2. Post to the general ledger. Once the journals are completed and totaled, the total amounts are posted to the general ledger which is listing of accounts from the chart of accounts. For an example, an account prepaid insurance might have entries coming from more than one journal (cash disbursements for a payment, and general journal for the monthly expense write off).

3. Prepare a trial balance which lists all the general ledger account balances and is used to prove the mathematical accuracy of the ...

Purchase this Solution
Free BrainMass Quizzes
Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Motivation

This tests some key elements of major motivation theories.

View More Free Quizzes
Related BrainMass Solutions

  • The Importance and Usefulness of the Accounting Cycle

    Then the process begins over again in the next accounting period. What is the value of the completion of the steps in the accounting cycle?

  • The steps in the accounting cycle for a merchandising compan

    The steps in the accounting cycle for a merchandising company are different from the accounting cycle for a service company.

  • Steps in the Accounting Cycle Explanation

    445586 Steps in the Accounting Cycle Explanation What are the steps in the accounting cycle? List and explain. Please find the solution attached List and explain the steps in the accounting cycle.

  • Accounting Cycle

    172808 What would happen if all of the steps of the accounting cycle were not completed in a specific accounting period? What would happen if all of the steps of the accounting cycle were not completed in a specific accounting period?

  • Accounting: Concepts and the Cycle

    What are the steps of the accounting cycle?

  • Accounting Cycle and Sample Financial Statements

    item=UGFyZW50SUQ9NDA3OTd8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1 The attached MS Word document shows a flow chart illustrating the major steps included in the accounting cycle.

  • Completion of Accounting Cycle

    Steps in Completing the Accounting Cycle The term, accounting cycle, refers to the steps involved in accounting for all of the business activities during an accounting period. These steps are repeated each reporting period.

  • This post discusses the accounting cycle.

    What are steps of the accounting cycle? The steps in the accounting cycle are as follows: 1. The transaction that needs to be recorded is identified. 2.

  • The Accounting Cycle: Steps

    88142 The Accounting Cycle: Steps Record transactions in General Journal for January 2006 and complete all steps of accounting cycle. 1 Invested $6000 cash and $2000 of equipment in the business. 4 Paid salaries $300 6 purchased $ 1200 equipments

View More Related Solutions