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Accounting Cycle

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Accounting Cycle | accountingcycle.org Reviews
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Our site provides the most comprehensive and accurate information about Accounting Cycle.
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Accounting Cycle | accountingcycle.org Reviews

https://accountingcycle.org

Our site provides the most comprehensive and accurate information about Accounting Cycle.

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1

Operating Cycle

http://www.accountingcycle.org/Operating-Cycle.html

What is an Operating Cycle and Who does it Affect? In essence, an operating cycle is the length of time that elapses between the moment a company buys a product as inventory, and the time the company sells that same product and turns it into income. This cycle is one of the most important factors when it comes to keeping businesses afloat. In order to understand this equation, we must first be able to understand and calculate the figures for the terms used in the previous sentence.

2

Trial Balance

http://www.accountingcycle.org/Trial-Balance.html

Calculation of a Trial Balance: Possible Errors. The purpose of the trial balance step of the accounting cycle is to ascertain whether or not an error has occurred during the bookkeeping process. Double-entry bookkeeping is self-correcting as a result of the debits and credits system, but there are still a number of ways in which errors can occur. Some of the most common examples are discussed below. Errors of Original Entry and Omission.

3

Accounting Cycle Steps

http://www.accountingcycle.org/Accounting-Cycle-Steps.html

Understanding the Steps of the Accounting Cycle. The accounting cycle is a basic series of steps used by bookkeepers and accountants to track money from the moment it is spent or earned to the moment it is officially registered in a business's financial accounts. While some of the accounting cycle steps may seem very technical, this article attempts to break down the basics in a simple, easy-to-understand way. Step 1: Record and Analyze. Steps 2 and 3: Debits and Credits. Step 4: Trial Balance. Although ...

4

Accounting Cycle Example

http://www.accountingcycle.org/Accounting-Cycle-Example.html

Using an Accounting Cycle Example. Sometimes the best way to understand a financial or mathematical process is to be given an example of that process in action. For the accounting cycle, it can be helpful to visualize specific examples in each of the different steps. A single accounting cycle example has been taken through each individual step below to help with this visualization and subsequent understanding. Recalculation and Adjusted Entries. Financial Statements and Closing Entries.

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