Supplement - The Accounting Cycle Flashcards Preview

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Flashcards in Supplement - The Accounting Cycle Deck (4)
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1

What is the First Step in the Accounting Cycle?

to enter original documentation (Purchase invoices, sales invoices, payroll records) into the books of account.

2

What is the Second Step in the Cycle?

it occurs on a monthly basis and it's posting and balancing the journals and ledgers.

3

What's the Third Step of the Cycle?

Adjustments to the accounts to produce statements

4

What is the fourth and final step of the Cycle?

To create the financial statements on a monthly basis and on a yearly basis