Understanding Accounting Cycle Concepts and Steps

Understanding
Accounting Cycle
Concepts and Steps

Abstract
The discussion deals with the concepts and steps of the accounting
cycle. The cycle of accounting is the collective process of
identification, analysis, and record of the various accounting events of
an corporate entity. The series of steps begin when a transaction
occurs and end with its inclusion in the financial statements as shown
in the following presentation. On top of that the various evaluation of
the worksheet and importance of worksheet in the process of
accounting. The thesis statement states that each step in the
accounting cycle plays an important role in creating accurate entries
and managing the finances of entity each time a purchase is made or
revenue is earned.

Accounting Cycle
The accounting cycle refers to the collective process of identification,
recording and analysis of the of the various events and transitions in
the related to accounting and finance of an corporate entity. The cycle
of accounting steps starts when the transaction occurs and ends with
the entry in the financial statement(Bierer, et al., 2015). The general
records in the accounting cycle includes the ledger and the trial
balance. The accounting cycle can be referred to as the mythological
set of rules that assures the conformity and accuracy of the financial
statements. In the modern times the accounting cycle can be
automated by various software that reduces the risk of errors.