Steps in the Accounting Cycle
Accounting
Kerri Perry
Step #1
Analyze Business
Transactions
Step #9
Step #2
Prepare a Post
Closing Trial
Balance
Journalize the
Transactions
Step #8
Journalize and
Post Closing
Entries
Step #3
The Accounting Cycle
Post to Ledger
Accounts
Step #7
Prepare Financial
Statements:
Income Statement,
Owner’s Equity
Statement, Balance
Sheet
*Optional Steps: If a worksheet is
prepared, steps 4-6 are incorporated
in the worksheet. If reversing entries
are prepared, they occur between
stages 9 and 1.
Step #4
Prepare a Trial
Balance
Step #6
Step #5
Prepare an
Adjusted Trial
balance
Journalize & Post
Adjusting Entries:
Deferrals/Accruals
Question #1
• How many steps are required in the
accounting cycle?
– 8 steps
– 5 steps
– 9 steps
– 7 steps
Question #2
• What does the first step of the accounting
cycle include?
– Posting to ledger accounts
– Analyzing business transactions
– Preparing an adjusted trial balance
– Journalizing transactions
Question #3
• Which of the following is not a financial
statement (part of step #7)?
– Balance sheet
– Income statement
– Balance statement
– Owner’s Equity Statement
Question #4
• True/False-There are optional steps to the
accounting cycle?
– True
– False
Question #5
• What does the last step in the accounting
cycle include?
– Preparing financial statements
– Journalizing and posting closing entries
– Preparing an adjusted trial balance
– Preparing a post-closing trial balance
Correct!
Forward
to
Question
#2
Forward
to
Question
#3
Forward
to
Question
#4
Forward
to
Question
#5
Incorrect!
Back to
Question
#1
Incorrect!
Back to
Question
#2
Incorrect!
Back to
Question
#3
Incorrect!
Back to
Question
#4
Incorrect!
Back to
Question
#5