The Steps In The Accounting Cycle and How To Prepare Correcting Entries

Abstract

The accounting cycle is a vital difficulty depend however hard for introductory monetary accounting college students to learn. However, the accounting cycle is a very simple subject. This is simply a list of the accountant's basic actions that lead to financial statements. The author believes the difficulty stems from the way cycle accounting is presented in accounting texts. In this paper, the authors review step in the accounting cycle and how to prepare correcting entries. Starting from the transaction occurred, and ending with its representation in the financial statements. After the cycle ends, steps are taken to start the next accounting cycle. The purpose of this paper is to assess the stages and know 9 stages and analyze the characteristics of each stage. In doing so secondary records inclusive of textbooks and journals were consulted.