Sophia Tutorial Accounting Cycle Summary,

This tutorial will cover the topic of the accounting cycle, which is a series of steps followed when processing and reporting accounting information. Our discussion breaks down as follows: 1. The Accounting Cycle a. Step 1: Analyzing b. Step 2: Journalizing c. Step 3: Posting d. Step 4: Adjusting e. Step 5: Reporting f. Step 6: Closing 1. The Accounting Cycle There are six phases in the accounting cycle cycle, and we will discuss each phase individually.  TERM TO KNOW Accounting Cycle A series of steps followed when processing and reporting accounting information 1a. Step 1: Analyzing The first step in the accounting cycle is to identify business events--both internal and external--that need to be documented in the accounting or financial system. These events can be identified by using source documents, which are an aid in determining what events took place that need to be documented. Once documented, it's important to assess the impact of those events: do they increase certain accounts, or do they decrease certain accounts?