What is accounting cycle

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Accepted Answer

The accounting cycle is a series of steps followed in the accounting process to record, analyze, and report financial transactions.

The accounting cycle starts with identifying and analyzing transactions.
Transactions are then recorded in the general journal.
The recorded transactions are then posted to the general ledger.
Adjusting entries are made to ensure accurate financial statements.
Financial statements are prepared, including the income statement, balance sheet, and cash flow statement.
Closing entries are made to transfer temporary account balances to the permanent accounts.
Finally, a post-closing trial balance is prepared to ensure the accounts are in balance.
The accounting cycle then starts again for the next accounting period.

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