Question

What are the 10 steps in the accounting cycle?

Answer 1

The ten steps in the accounting cycle are:

• Examining the transactions.
• Passing the journal entries of the respective transactions.
• Posting to ledger accounts from journal entries.
• Determining the unadjusted trial balance.
• Adjusting entries to the trial balance.
• Constructing an adjusted trial balance.
• Refining the financial statements.
• Concluding temporary accounts.
• Preparing final trial balance.
• Reversing entries if required.

Also see:

• Accounting Ratios
• Accounting MCQs