Accounting Cycle Steps 1. Analyze – analyze transactions from the source documents 2.Record- journalize transactions and prepare unadjusted trial balance 3.Adjust- journalize adjusting entries and prepare adjusted trial balance 4.Report- prepare financial statements

Accounting Cycle Steps

1. Analyze – analyze transactions from the source documents
2.Record- journalize transactions and prepare unadjusted trial balance 
3.Adjust- journalize adjusting entries and prepare adjusted trial balance 
4.Report- prepare financial statements
5.Close- journalize closing entries and prepare 
6.Post- closing trial entries

Statement of cash flows

-reports a business’s cash inflows and cash outflows during a given period of time

-cash flows are grouped into 3 business activities (operation, investing, financing)

Retained Earnings

-Retained Earnings, beginning of period 

Add: Net Income (loss)

Less: Dividends and other

-Retained Earnings, end of the period

Revenue

Sales

Expenses

– Cost of Sales
-Selling, general and administrative expense
-Income tax expense

Income Statement

Reports the results of operations for a business for a given time period, usually a quarter or a year. lists the Revenue and Expenses of the business

Balance Sheet

A listing of a firms assets, liabilities and stockholders equity as of a given date, usually the end of an accounting period

Classified Balance Sheet

-presents the assets and liabilities of a business in separate subgroups

– 2 sub groups of assets , current, and long term

Current Assets (normal operating cycle) – current assets consist of cash and other assets that will be converted into cash or used up with in the normal operating cycle of a business or 1 year whichever is longer.

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