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8 Steps in the Accounting Cycle

The 8 Steps in the Accounting Cycle | A Step-by-Step Example Guide

The accounting cycle comprises of eight collaborative steps. They are:

Identifying and analyzing the transactions
Recoding these transactions into the general journal
Posting to the General Ledger
Preparing a trial balance
Making adjusting entries
Preparing an Adjusted Trial Balance
Preparing financial statements
Closing accounts

The 8 Steps in the Accounting Cycle | A Step-by-Step Example Guide Read More ยป

๐ˆ๐ฌ ๐€๐œ๐œ๐จ๐ฎ๐ง๐ญ ๐‘๐ž๐œ๐ž๐ข๐ฏ๐š๐›๐ฅ๐ž ๐š๐ง ๐€๐ฌ๐ฌ๐ž๐ญ ๐Ž๐ซ ๐€ ๐‹๐ข๐š๐›๐ข๐ฅ๐ข๐ญ๐ฒ?

๐€๐œ๐œ๐จ๐ฎ๐ง๐ญ ๐‘๐ž๐œ๐ž๐ข๐ฏ๐š๐›๐ฅ๐ž- ๐€๐ง ๐€๐ฌ๐ฌ๐ž๐ญ ๐Ž๐ซ ๐€ ๐‹๐ข๐š๐›๐ข๐ฅ๐ข๐ญ๐ฒ?

Account receivable is classified as an asset because it is the amount that the company will receive on behalf of the services that it has provided.

๐€๐œ๐œ๐จ๐ฎ๐ง๐ญ ๐‘๐ž๐œ๐ž๐ข๐ฏ๐š๐›๐ฅ๐ž- ๐€๐ง ๐€๐ฌ๐ฌ๐ž๐ญ ๐Ž๐ซ ๐€ ๐‹๐ข๐š๐›๐ข๐ฅ๐ข๐ญ๐ฒ? Read More ยป

๐—”๐—ฐ๐—ฐ๐—ฟ๐˜‚๐—ฒ๐—ฑ ๐—ฅ๐—ฒ๐˜ƒ๐—ฒ๐—ป๐˜‚๐—ฒ: is it an actual revenue?

๐—”๐—ฐ๐—ฐ๐—ฟ๐˜‚๐—ฒ๐—ฑ ๐—ฅ๐—ฒ๐˜ƒ๐—ฒ๐—ป๐˜‚๐—ฒ: ๐—œ๐˜€ ๐—œ๐˜ ๐—”๐ง ๐—”๐—ฐ๐˜๐˜‚๐—ฎ๐—น ๐—ฅ๐—ฒ๐˜ƒ๐—ฒ๐—ป๐˜‚๐—ฒ?

When a company provides its services or delivers its goods before the payment is received is called accrued revenue.

๐—”๐—ฐ๐—ฐ๐—ฟ๐˜‚๐—ฒ๐—ฑ ๐—ฅ๐—ฒ๐˜ƒ๐—ฒ๐—ป๐˜‚๐—ฒ: ๐—œ๐˜€ ๐—œ๐˜ ๐—”๐ง ๐—”๐—ฐ๐˜๐˜‚๐—ฎ๐—น ๐—ฅ๐—ฒ๐˜ƒ๐—ฒ๐—ป๐˜‚๐—ฒ? Read More ยป

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