Courtney Graver
AC 107
Ten Steps of the Accounting
1)
Analyzing and Classify
Identifying the transactions from the events is the first step of accounting process. Events are
analyzed to find the impact on the financial position or to be more specific the impacts on the
accounting equation. Documents such as; a receipt, an invoice, a depreciation schedule, and a
bank statement etc. provides evidence that an economic event has actually occurred.
2)
Journalizing the Transaction
Transactions having an impact on the financial position of a business are recorded in the
general journal. In the general journal, the transactions are recorded as a debit and a
credit in monetary terms with the date and short description about the cause of the
particular economic event.
3)
Posting from the Journals to the General Ledger
Transactions recorded in the general journal are then posted to the general ledger accounts.
The accounts classify accounting data into certain categories and they are recorded in general
journal entries according to that classification. Depending on the frequency of the
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- Christine Washington
- Accounting, Income Statement, Trial Balance, Generally Accepted Accounting Principles, Double-entry bookkeeping system
