Principles of Financial Accounting · free preview
The Initial Steps in the Accounting Cycle
The accounting cycle is a repeating sequence that identifies and analyzes transactions, records them in a journal, posts to the ledger, and prepares an unadjusted trial balance, then continues through adjustments and financial statements each period.
1. A cycle that repeats every period
A cycle that repeats every period
2. Identify and analyze transactions
Identify and analyze transactions
3. Record in the journal and post to the ledger
Record in the journal and post to the ledger
4. Prepare the unadjusted trial balance
Prepare the unadjusted trial balance
5. First step of the cycle
What is the first step in the accounting cycle?
6. Journal versus ledger
What is the difference between a journal and a ledger?
7. What a balanced trial balance proves
What does a balanced unadjusted trial balance prove?
8. Which event starts the cycle
Which event triggers step one of the accounting cycle for a landscaping company?
9. Number of cycle steps
The complete accounting cycle described in this course has how many steps? Give the number only.
10. Book of original entry
Complete the term. The journal is called the book of ____ entry because it is the first place transaction information is recorded.
Practice this interactively
Free account · instant grading · spaced review that schedules itself.
Start this course for free