Chapter 2+3: Accounting cycle

Question 1

Accounting cycle steps

Answer 1

analyze transactions
general journal
general ledger
trial balance
adjusting entries
adjusted trial balance
statement of income
statement of changes in equity
statement of financial position
closing entries
post adjusting trial balance

Question 2

1. Analyse transactions

Answer 2

determine economic events and classify account and debit or credit

Question 3

2. General journal

Answer 3

events ordered chronologically
date, account, debit, credit

Question 4

3. General ledger

Answer 4

T accounts organized by account type
date, debit, date, credit

Question 5

4. Trial balance

Answer 5

summarize all five account types and ensure debits=credits

Question 6

5. Adjusting entries