example:

Accounting Cycle There are 10 steps in the Accounting Cycle as follows: 1. Transactions are analyzed and recorded in the journal (journal entries) 2. Transactions are posted to the ledger accounts 3. An unadjusted trial balance is prepared 4. Adjustment data are assembled and analyzed 5. An optional end-of-period spreadsheet is prepared (see exhibit 12, page 176) 6. Adjusting entries are journalized and posted to the ledger 7. An adjusted trial balance is prepared 8. Financial statements are prepared 9. Closing entries are journalized and posted to the ledger 10. A post-closing trial balance is prepared Post#1 (4 pts) Due Wednesday, February 10th In your own words, describe the Importance of ONE of the steps in the accounting cycle. Discuss the benefit that step provides to external decision makers (customers, vendors, investors, etc. Discuss what would happen if that step was omitted. Instructor Sample Posts Posta1 Step#5 the optional end of period spreadsheet is helpful to prepare adjustments and then easily take the adjusted numbers and create the financial statements. Without the spreadsheet, we would have to use the ledger, making sure that all adjustments had been posted. We would have to flip through numerous pages - or access multiple accounts-to be able to have the data for the F/S. Having all the data on one spreadsheet makes it a lot easier to compile the F/5 correctly, which means that our extemal users will have more accurate data in a more timely manner