ACCOUNTING CYCLE:
Process of accounting starts with financial transactions and followed by recording of transactions in general journal. Journal is than posted to ledger. After the end of a specific period ledgers are summarized to trial balance. This trial is then used to produce financial statements for that specific period. The same process is then followed for the next accounting period. This process forms a cycle of activities, which is called accounting cycle.
Accounting cycle can be depicted in picture form as follows:
Author: Zuhair Afzaal
Studied Chartered Accountancy and now Pursuing Professional Career as Financial Consultant, Manager Accounts and Finance. A teacher by passion and likes to make things easier for students by publishing courses and lecturing in on-campus and online classes
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