Listed below are all the steps in the accounting cycle. (a) Record and post closing entries. (b)

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Listed below are all the steps in the accounting cycle.
(a) Record and post closing entries.
(b) Use source documents to identify accounts affected by external transactions.
(c) Record the transaction.
(d) Prepare financial statements (income statement, statement of stockholders’ equity, balance sheet, and statement of cash flows).
(e) Record and post adjusting entries.
(f) Assess whether the transaction results in a debit or a credit to the account balance.
(g) Analyze the impact of the transaction on the accounting equation.
(h) Prepare a trial balance.
(i) Post the transaction to the T-account in the general ledger.

Required:
List the steps in proper order.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Financial Accounting

ISBN: 978-0078025549

3rd edition

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

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