Accounting Cycle - Research Article from Encyclopedia of Business and Finance

This encyclopedia article consists of approximately 5 pages of information about Accounting Cycle.
This section contains 1,221 words
(approx. 5 pages at 300 words per page)
Buy the Accounting Cycle Encyclopedia Article

The primary objectives of the accounting function in an organization are to process financial information and to prepare financial statements at the end of the accounting period. Companies must systematically process financial information and must have staff who prepare financial statements on a monthly, quarterly, and/or annual basis. To meet these primary objectives, a series of steps is required. Collectively these steps are known as the accounting cycle. The steps, applicable to a manual accounting system, are described below. Later, there will be a brief discussion of a computerized processing system.

The Steps of the Cycle

  1. Collect and analyze data from transactions and events: As transactions and events related to financial resources occur, they are analyzed with respect to their effect on the financial position of the company. As an example, consider the sales for a day in a retail establishment that are collected on...

(read more)

This section contains 1,221 words
(approx. 5 pages at 300 words per page)
Buy the Accounting Cycle Encyclopedia Article
Copyrights
Macmillan
Accounting Cycle from Macmillan. Copyright © 2001-2006 by Macmillan Reference USA, an imprint of the Gale Group. All rights reserved.