The Accounting Cycle-What Takes Place This activity is Important because knowing what the six steps of the accounting cycle are, and the order in which those steps must occur, is not enough. Accounting goes far beyond the mere recording of financial Information. It also Involves the completion of specific actions at each step in the procedure. The goal of this activity is to demonstrate your understanding of what takes place at each step of the accounting cycle. Instructions: Match the action to the correct corresponding step of the accounting cycle. N 2 Record transactions In journals. Take a trial balance. 3 Analyze financial statements. Prepare the financial statements. 5 Analyze source documents. Transfer journal entries to ledger Match each of the options above to the items below. Separate purchasing receipts from sales documents. Record financial data. Post Individual transactions into a single account. Summarize data in the ledgers. Prepare Income statement. Evaluate profit/loss of the firm