The Nine Steps of Accounting-Misty Charnesky

The Nine Steps of Accounting-Misty Charnesky - period, this...

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Running head: THE NINE STEPS OF ACCOUNTING 1 The Nine Steps of Accounting Misty Charnesky XACC280 September 1, 2011 Mark Bull
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THE NINE STEPS OF ACCOUNTING 2 The Nine Steps of Accounting
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THE NINE STEPS OF ACCOUNTING 3
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THE NINE STEPS OF ACCOUNTING 4 The accounting cycle visually shows the series of steps which are repeated every reporting period and contains nine steps. 1. Analyze business transactions 2. Journalize the transactions
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THE NINE STEPS OF ACCOUNTING 5 3. Post to ledger accounts 4. Prepare a trial balance 5. Journalize and post adjusting entries (prepayments/accruals) 6. Prepare an adjusted trial balance 7. Prepare financial statements (income statement, retained earnings statement, balance sheet) 8. Journalize and post closing entries 9. Prepare a post-closing trial balance In the cycle steps one, two, and three are more likely to occur daily during an accounting
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Unformatted text preview: period, this keeps the financial information up to date and correct. Steps four, five, six, and seven normally occur at the end of an accounting period whether it is monthly, quarterly, or annually. Steps eight and nine are only done at the end of the fiscal year but can be done at the end of each period if they choose to. The one part that is missing is the reversed entries, if there are any; this step is stationed between the ninth and tenth steps. When researching I have found examples of the accounting cycle with less than nine steps, in this way they condense the steps together in order to make it easier to understand. Some examples of other Accounting Cycles I have found: THE NINE STEPS OF ACCOUNTING 6...
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This note was uploaded on 09/05/2011 for the course ECON 101 taught by Professor Smith during the Spring '11 term at University of Phoenix.

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The Nine Steps of Accounting-Misty Charnesky - period, this...

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