Accountıng I Deneme Sınavı Sorusu #1313747
What is the full cycle of accounting?
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The steps in accounting cycles briefly:
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The accounting cycle is often described as a process that includes the following-steps: identifying, collecting and analyzing documents and transactions. |
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The accounting cycle is often described as a process that includes the following-steps: posting the journalized amounts to accounts in the general and subsidiary ledgers |
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The accounting cycle is often described as a process that includes the following-steps, preparing an unadjusted trial balance. |
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An accounting cycle includes three main stages of activities;
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As the end of the period comes, adjusting entries are made to ensure the assets, liabilities and owner’s equity. After the adjustment transactions, adjusted trial balance is prepared, and financial statements are prepared afterwards. After the preparation of financial statements, the company journalizes and posts the closing entries. The final step of the accounting cycle is preparing the post-closing trial balance. Now, let’s summarize the steps in accounting cycles briefly:
- Opening entries based on opening balance sheet
- Posting opening entries to ledger accounts
- Analyzing and journalizing daily transactions
- Posting daily transactions to accounts
- Preparing monthly trial balances
- Preparing unadjusted trial balance at the end of the period
- Adjusting entries
- Preparing adjusted trial balance
- Preparing financial statements
- Closing entries
- Preparing post-closing trial balance
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