Accounting cycle

The sequence of accounting procedures starting with journal entries for various transactions and ending with the financial statements. The journal normally record transactions as they occur, in the order they occur. Journal entries are regularly posted to a ledger, which organizes entries by account, and which contains all accounts used by the company or other entity. The sum of account activity is analyzed and summarized periodically (e.g., monthly, quarterly, or annually) in financial statements such as the balance sheet, income statement, and cash flow statements. See also general ledger.

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