Like this study set? Create a free account to save it.

Sign up for an account

Already have a Quizlet account? .

Create an account

What is The accouting cycle?

The accounting cycle is the process of gathering, preparing, analysing and reporting the activities of the business during one accounting period so that business and other decisions can be made.

Step 1

Collect and analyse infomation from source documents

Step 2

Journalise transactions

Step 3

post transaction to ledger accounts

Step 4

Prepare a trial balance

Step 5 (2 stages)

1. Journalise and post adjusting entries -balance day adjustments
2. Prepare and adjusted trial balance

Step 6

Prepare financial statements

Step 7 (2 stages)

Close the accounts
1. journalise and post closing entries
2. Prepare a post closing trial balance

Why is the accounting cycle important?

The accounting cycle is important because it gives meaningful comparrisons of operating results during one accounting period and others.

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions and try again


Reload the page to try again!


Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

Voice Recording