Accounting AC114 unit 9 assignment 
Crystal Morphis
Accounting Ac-114
Professor Felder-Strauss
Unit 9 Assignment
The Accounting Cycle: Simplified
The Accounting Cycle is the process used to record a business’ financial activities. The accounting process begins with analyzing a transaction and ends with closing the books. The cycle includes nine steps that are performed in sequence and are repeated every reporting period.
The series of steps are extremely beneficial and very effective in reducing errors and catching mistakes. Computerized accounting systems have made the lengthy process associated with record keeping much easier. These types of systems have reduced most of the mathematical errors that tend to happen when calculations are done manually. Ultimately, the goal of the entire
Accounting Cycle is to properly prepare accurate and honest financial statements, in which are used by both internal and external users. The financial statements provide a detailed look inside a company’s activities, profitability, and financial health in the reported period. The accounting process is also referred to as book-keeping. This process includes a series of nine steps, completed in the same order. The steps have been simplified, or explained in simple terms, in the following paper.
The first three steps in the Accounting Cycle are performed regularly, and take place during each period. The first step begins when a transaction takes place. Each transaction is analyzed by reviewing its source document (i.e. purchase orders and receipts, deposit slips, invoices, cancelled checks, etc.). When reviewing a transaction, determine which of the company’s accounts have been affected.
The second step requires the transactions to be recorded chronologically in the general journal. When an entry is made in the journal, the dual entry method is used. This method is used because each transaction affects at least two accounts; so there must be at least one debit and one credit to support them; and the total of these
Accounting Ac-114
Professor Felder-Strauss
Unit 9 Assignment
The Accounting Cycle: Simplified
The Accounting Cycle is the process used to record a business’ financial activities. The accounting process begins with analyzing a transaction and ends with closing the books. The cycle includes nine steps that are performed in sequence and are repeated every reporting period.
The series of steps are extremely beneficial and very effective in reducing errors and catching mistakes. Computerized accounting systems have made the lengthy process associated with record keeping much easier. These types of systems have reduced most of the mathematical errors that tend to happen when calculations are done manually. Ultimately, the goal of the entire
Accounting Cycle is to properly prepare accurate and honest financial statements, in which are used by both internal and external users. The financial statements provide a detailed look inside a company’s activities, profitability, and financial health in the reported period. The accounting process is also referred to as book-keeping. This process includes a series of nine steps, completed in the same order. The steps have been simplified, or explained in simple terms, in the following paper.
The first three steps in the Accounting Cycle are performed regularly, and take place during each period. The first step begins when a transaction takes place. Each transaction is analyzed by reviewing its source document (i.e. purchase orders and receipts, deposit slips, invoices, cancelled checks, etc.). When reviewing a transaction, determine which of the company’s accounts have been affected.
The second step requires the transactions to be recorded chronologically in the general journal. When an entry is made in the journal, the dual entry method is used. This method is used because each transaction affects at least two accounts; so there must be at least one debit and one credit to support them; and the total of these