Accounting Cycle
What is the first part of the Accounting Cycle?
Identify and Journalize Transactions
Accounting
the action or process of keeping financial accounts.
Balance Sheet
a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period.
Left Side
Asset
What is the second part of the accounting cycle?
Post in a ledger
Debit
is an accounting entry that either increases an asset or expense account
Income Statement
An income statement or profit and loss account is one of the financial statements of a company and shows the company’s revenues and expenses during a particular period. It indicates how the revenues are transformed into the net income or net profit.
Right side
liabilities and owners equity
What is the third part of the accounting cycle?
Adjusted Entries
Credit
entry that either increases a liability or equity account, or decreases an asset or expense account.
Statement of Owner's Equity
reports the changes in the equity section of the balance sheet during an accounting period.
Left Side (Debit or Credit)
Debit
Fourth part of the Accounting Cycle?
Prepare Financial Statements
Asset
a useful or valuable thing, person, or quality.
Statement of Cash Flows
is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities.
Right Side (Debit or Credit)
Credit
What is the fifth part of the Accounting Cycle?
Closing Entries
Liabilities
the state of being responsible for something, especially by law.
Notes to Financial Statements.
These provide additional information pertaining to a company's operations and financial position and are considered to be an integral part of the financial statements
What is the Grand daddy T
Accounting Equation