What is know as accounting cycle, what are the steps involved in accounting cycle?
Topic: The Accounting Cycle 1. The accounting cycle is the sequence of procedures used to keep track of what has happened in the business and to report the financial effect of those things. Following is a depiction of the steps in the accounting cycle and a brief description of each. STEP DESCRIPTION Transaction Basically, a transaction is doing business. A financial transaction (which is the kind of transaction we are interested in here) is doing something in business that involves the exchange of money. Business Paper or Computer Record Usually, the accounting department is not where the transaction takes place. It is necessary that a paper or computer record be prepared at the point-of-sale so that the accounting department is aware that a transaction occurred. Analyze When personnel in accounting get the business paper, it is necessary to determine: 1.) What happened? What kind of business took place? Did we charge our customer for something, get money for something, buy something,
