![]() ![]() In order to have the most accurate balances and most transparent financial data, steps must not be omitted. If an individual skips a step or leaves a step out inadvertently, the data may not be accurate or may be missing key components. The purpose of making correcting entries and reversing entries is so that all numbers and figures balance out correctly to ensure transparency in the financial figures of a company. There are various checks and balances in accounting to ensure accuracy in reporting. The purpose of preparing the various trial balances to is to double check how accurate the results are coming out with the figures entered. The accountant must use double entry method of accounting in journalizing the transactions. To journalize the transactions, one must determine which accounts will be affected by the transaction and correctly record the transaction to reflect those accounts. Analyzing transactions means that a company must save all purchase documents, checks, receipts, and any other document which would indicate a financial transaction. This is the primary reason which financial professionals and students focusing their studies in anything business related still learn the accounting cycle. ![]() The basis for which these steps were designed, however, has not changed. A lot of the accounting software programs available allow users to complete a variety of the accounting cycle steps in one step, or to accomplish the steps somewhat out of order. The accounting cycle was originally designed for accountants that did not have access to the computer software we do today. This paper will further discuss the accounting cycle, the effects of omissions, and finish with an overview of financial statements. Step nine is to prepare a post-closing trial balance, and step ten is to reverse. ![]() Step seven is preparing financial statements. Step six consists of preparing an adjusted trial balance. Step four is preparing an unadjusted trial balance. The steps are as follows: Step one refers to analyzing transactions. What are the steps in the accounting cycle? Order custom essay Accounting Cycle Steps ![]()
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