A process of recording and processing in the accounting events of a company.
There are steps to follow in an accounting cycle.
These are the nine steps of an accounting cycle:
Collect and analyze of data from transactions and events.
Put the transactions into the general journal.
Post entries to the general ledger.
Prepare an unadjusted trial balance.
Adjust entries appropriately.
Prepare an adjusted trial balance.
Organize the accounts into the financial statements.
Close the books.
Prepare a post-closing trial balance to check the accounts.
It is often called as the "bookkeeping cycle".
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