ccounting records must ensure
2 points
Accountability for assets and transactions
Tracking of routine business activities
Maintaining evidence of business activities
All of the above
Answers
Answer:
What Is the Accounting Cycle?
The accounting cycle is performed during the accounting period, to analyze, record, classify, summarize, and report financial information.
The Accounting Cycle
The accounting cycle is a series of steps performed during the accounting period (some throughout the period and some at the end) to analyze, record, classify, summarize, and report useful financial information for the purpose of preparing financial statements. In bookkeeping, the accounting period is the period for which the books are balanced and the financial statements are prepared. Generally, the accounting period consists of 12 months. However, the beginning of the accounting period differs according to the company. For example, one company may use the regular calendar year, January to December, as the accounting year, while another entity may follow April to March as the accounting period.
Eight Steps in the Accounting Cycle
There are eight steps in the accounting cycle and they are as follows:
Analyze transactions by examining source documents.
Journalize transactions in the journal.
Post journal entries to the accounts in the ledger.
Prepare a trial balance of the accounts and complete the worksheet (includes adjusting entries ).
Prepare financial statements.
Journalize and post adjusting entries.
Journalize and post closing entries.
Prepare a post-closing trial balance.