Deliverable 2 - The Accounting Cycle

Accounting Cycle Step - Adjusted Trial Balance

Definition - Takes the unadjusted trial balance in step 4 and adjusting the balances for the adjusting entries in step 5.

Accounting Cycle Step - Prepare the Unadjusted Trial Balance

Definition - A trial balance is a numerical listing of all accounts in the ledger and there ending balance.

Accounting Cycle Step - Transactions

Definition - Business transactions need to be identified and analyzed for their impact on the financial position of the company.

Accounting Cycle Step - Recording

Definition - Transactions are recorded in chronological order in the company's double entry accounting system.

Accounting Cycle Step - Posting to the General Ledger

Definition - Entries are then posted to the company's general ledger which is a collection of all of the company's accounts.

Accounting Cycle Step - Adjusting Entries

Definition - Records any revenue that has been earned but not yet recorded and any expenses that have been incurred but not yet recorded.