Question

What are the 7 steps of the accounting cycle?

Answer 1

The seven steps in the accounting cycle are as follows:

1. Identifying and Analysing Business Transactions
2. Posting Transactions in Journals
3. Posting from Journal to Ledger
4. Recording adjusting entries
5. Preparing the adjusted trial balance
6. Preparing financial statements
7. Post-Closing Trial Balance

Also read:

• Accounting MCQs
• Difference Between Bookkeeping and Accounting
• Difference Between Cost Accounting and Financial Accounting

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