writing paper acct assign unit 6

writing paper acct assign unit 6 - The Accounting Cycle The...

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The Accounting Cycle 1 The Accounting Cycle Crystal Abner Kaplan Accounting 1 10/15/2011 The Accounting Cycle
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2 The term, accounting cycle, refers to the steps involved in accounting for all of the business activities during an accounting period. There are ten steps and these steps are repeated each reporting period. This is a brief summary of these steps and their importance in the vast Before we discuss the steps, it’s important that you realize when the steps occur. Steps 1 through 3 occur often throughout the accounting time period while steps four through 10 occur only at the end of the accounting period. The first step in the accounting cycle is analyzing transactions such as checks or bank statements. This will assist in getting organized and see what information is available. If the transactions are analyzed before getting started it will prevent having to search for documents later and these transactions will be needed in the following steps. When the transactions are analyzed then it is time for step two which is to journalize. For this we will use double-entry accounting. This means each transaction must be recorded in at least two accounts or that the debits must equal the credits. The journal is like a summary of everything and is needed in the following documents that we will be utilizing in our ten steps. If this is not done it makes it more difficult for others to see what is going on financially within a company. It
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writing paper acct assign unit 6 - The Accounting Cycle The...

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