Accounting cycle

Purpose of this section “accounting cycle” is to explain the flow of accounting system from initial recognition of business transactions to the end-product of accounting, i.e. financial statements. Some of the components of accounting cycle have been already explained in previous section double-entry accounting system. Remaining components of accounting cycle will be explained in this section:

Following are the chapters included in this section:

  1. Accounting cycle explained
  2. Trial balance
  3. Adjusting entries
  4. Unadjusted and adjusted trial balance
  5. Closing entries and post-closing trial balance