Chapter 6 - Closing Process - prt 1

Accounting Cycle

100

What is the first step in the accounting cycle?

Analyze transactions 

Accounting Cycle

100

What is the second step in the accounting cycle?

Journalize the transactions

Accounting Cycle

200

What is the last step in the accounting cycle?

Interpret the financial information

Closing Entries

300

List the steps of the Closing process.

REID (close the Revenue, Expense, Income Summary, and then the Drawing accounts)

Closing Entries

400

Why do businesses participate in the closing process?

To prepare records for the next accounting period