Accounting Cycle
           The accounting cycle is a set of
steps used in the preparation of financial statements for a given period. The steps include: Analyzing transactions and events,
journalizing transactions and events, posting journal entries, preparing the
unadjusted trial balance, journalizing and posting adjusting entries, preparing
the adjusted trial balance, preparing financial statements, journalizing and
posting closing entries, and preparing the post-closing trial balance.
Analyzing Transactions and Events
           The beginning, and arguably the
hardest, step is the collection and analysis of source documents. A particular transaction must be categorized
in relation to its impact on the financial position of the company.Â
