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Accounting Cycle Paper 1 Running Header: Accounting Cycle Paper Accounting Cycle Paper Sharon Smith Steven Uhl, ACC421
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Accounting Cycle Paper 2 The Accounting Cycle is a series of steps which are repeated every reporting period. The process starts with making accounting entries for each transaction and goes through closing the books. Use this tutorial for an overview of the accounting cycle, covering activities required both during and at the end of the accounting period. The primary objectives of the accounting function in an organization are to process financial information and to prepare financial statements at the end of the accounting period. Companies must systematically process financial information and must have staff who prepare financial statements on a monthly, quarterly, and/or annual basis. To meet these primary objectives, a series of steps is required. Collectively these steps are known as the accounting cycle. The steps, applicable to a manual accounting system, are described below. Later, there will be a brief discussion of a computerized processing system. There are many steps in the accounting cycle. The first one is collect and analyze the data from transactions and events. Collect and analyze data from transactions and events: As transactions and events related to financial resources occur, they are analyzed with respect to their effect on the financial position of the company. As an example, consider the sales for a day in a retail establishment that are collected on a cash register tape. These sales become inputs into the accounting system. Every organization establishes a chart of accounts that identifies the categories for recording transactions and events. The chart of accounts for the retail establishment mentioned earlier in this paragraph will include Cash and Sales. Identify the transaction through an original source document (such as an invoice, receipt , cancelled check, time card, deposit slip, purchase order) which provides: date, amount, description (account or business purpose), name and address of other party (if practical). At the my company wer don’t collect data until the end of the day.(answers corporation, 2008). This is were we count the tills and key in the amounts in the computer. Then we do the records of the over and shortages for
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Accounting Cycle Paper 3 that register. In the morning is were we actually finalize the reports for the previous day, so that
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This note was uploaded on 11/29/2010 for the course ACC 545 ACC 545 taught by Professor Donna during the Fall '09 term at University of Phoenix.

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accounting cycle paper - Accounting Cycle Paper 1 Running...

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