ACC349.Wk1.individualpaper - Running head ACCOUNTING CYCLE...

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Running head: ACCOUNTING CYCLE 1 Accounting Cycle Melissa Thomas-Briones ACC/421 July 14, 2011 Jeffery Hendrix
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ACCOUNTING CYCLE 2 Accounting Cycle The accounting cycle is an important part of any company’s financial health. Certified Public Accountants recommend following the accounting cycle to be able to determine the company’s financial status appropriately. This is especially recommended during tax season. According to WebFinance Inc (2011), the accounting cycle can be defined as “The sequence of six steps in the processing of financial transactions (from the time they occur to their inclusion in financial statements) pertaining to an accounting period.” (Definition, para. 1). The six steps of the accounting cycle are listed and discussed below. Step 1: Analyzing the transactions as they occur In this first step of the accounting cycle transactions are separated into the correct debits and credits as they occur. This is an important part of the cycle because just one transaction listed in the wrong column or the wrong category can skew the financial results on financial reports later on.
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  • Spring '11
  • varied
  • Accounting, Certified Public Accountant, Chief financial officer, webfinance inc, SecurCare Self Storage

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