Accounting Cycle Flashcard

Front

What is the accounting cycle?

Back

A process of recording, classification, and summarization of economic transactions

Front

Which financial statements are prepared during the accounting cycle?

Back

Income statement, balance sheet, cash flow statement, and statement of changes in equity

Front

How often is the accounting cycle followed?

Back

Once during each accounting period

Front

What is the first step in the accounting cycle?

Back

Analyzing and recording transactions via journal entries

Front

Where are journal entries posted?

Back

Ledger accounts

Front

What is prepared after posting journal entries to ledger accounts?

Back

Unadjusted trial balance

Front

When are adjusting entries prepared?

Back

At the end of the period

Front

What is the purpose of the adjusted trial balance?

Back

To ensure that debits equal credits

Front

Which accounts are closed during the closing entries step?

Back

Temporary accounts

Front

What is the last step in the accounting cycle?

Back

Preparing post-closing trial balance