The Accounting Cycle

Question 1

What is the Accounting Cycle?

Answer 1

The sequence of events to record, classify, and summarize accounting information

Question 2

The Accounting Cycle has _____ steps

Answer 2

Eight (8)

Question 3

Step 1 of the Accounting Cycle

Answer 3

1. Record transactions in the General Journal

Question 4

Step 2 of the Accounting Cycle

Answer 4

2. Post transactions in the General Ledger

Question 5

Step 3 of the Accounting Cycle

Answer 5

3. Create an Unadjusted Trial Balance

Question 6

Step 4 of the Accounting Cycle

Answer 6

4. Record Adjusting Journal Entries

Question 7

Step 5 of the Accounting Cycle

Answer 7

5. Create an Adjusted Trial Balance

Question 8

Step 6 of the Accounting Cycle

Answer 8

6. Prepare Financial Statements

Question 9

Step 7 of the Accounting Cycle

Answer 9

7. Prepare Closing Journal Entries

Question 10

Step 8 of the Accounting Cycle

Answer 10

8. Prepare After-Closing Trial Balance

Question 11

The whole Accounting Cycle

Answer 11

1. Record transactions in the General Journal
2. Post transactions in the General Ledger
3. Create an Unadjusted Trial Balance
4. Record Adjusting Journal Entries
5. Create an Adjusted Trial Balance
6. Prepare Financial Statements
7. Prepare Closing Journal Entries
8. Prepare After-Closing Trial Balance