What Happens If You Miss A Step In The Accounting Cycle
There are 10 Steps in the Accounting Cycle . Missing of any of the step would not give accurate, true & fair view information of Financial Statements To the Users of Financial Statements . These 10 steps are shown below: 1. Analyzing the Monetary Transactions And Recorded In Source Documents i.e., Voucher, Invoice 2. Journalizing the B usiness Transactions (Preparing General Journal, Special Journals) 3. Posting the Accounts To Ledger (Preparing General Ledger And Subsidiary Ledgers) 4. Preparing Unadjusted Trial balance 5. Recording Adjusting Entries related to Deferrals And Accruals according to Accrual B asis of Accounting 6. Preparing Adjusted Trial balance where the balances of Temporary Accounts and Permanent Accounts are updated 7. Preparing Financial Statements (Income Statement or Statement of Comprehensive Income, B alance Sheet or Statement of Financial Position, Statement of Cash...