Understanding the Accounting Cycle and its Steps

Posted by on Jan 14, 2025 in Taxation and Public Administration | 0 comments

The Accounting Cycle

The accounting cycle is a series of activities that begins with a transaction and ends with the closing of the books at the end of the fiscal year. Because this process is repeated each reporting period, it is referred to as the accounting cycle and includes these major steps:

The Accounting Process

  1. Identify the transaction or other recognizable event.
  2. The transactions should have a source document such as a purchase order or invoice.
  3. Analyze and classify the transaction. This step
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