3.3: The Accounting Cycle

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The following video briefly explains key components of the accounting cycle.

A YouTube element has been excluded from this version of the text. You can view it online here: pb.libretexts.org/llfinancialaccounting/?p=64

In the next 2 units we will learn the components of the accounting cycle. In the video, it discussed:

Capture activity of a business: we will do this with a journal entry
Organize into groups and edit: this will be accomplished by organizing the information into account and posting journal entries
Publish the story: in accounting, our story is the financial statements
Archive: this will be the closing process to prepare the books for the next period

To give you a picture and quick reference for all you will learn in the accounting cycle. We begin on the right hand side and move around the cycle. Click Accrual World for a printable copy.

Accrual World. Authored by: Debra Porter. Provided by: Tidewater Community College. License: CC0: No Rights Reserved