SALE ENDS AT MIDNIGHT: Get started with $1000 off!

Accounting Cycle

Accounting Cycle

The steps taken each month to process financial transactions

When a company engages in a financial transaction such as buying inventory, we would record that action a journal entry, transfer the entries in the journal into T accounts, record adjusting entries in the journal and the T accounts, transfer the balances of the T-accounts to a trial balance, use the trial balance to create an Income Statement, a Balance Sheet, a Statement of Retained Earnings, and a Statement of Cash Flows, create, journalize, and record closing entries in the T-accounts, and finally create a post-closing trial balance. This is the accounting cycle.

There is currently no content classified with this term.

Get instant access to step-by-step instructions on how to apply and sit for the CPA Exam.