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The Accounting Cycle - Coggle Diagram
The Accounting Cycle
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Concept of Expense
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• Examples: wages, materials, rent
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Concept of Income
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• From sales, interest, rent, commissions
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Opening Entry
Transfer of Balances
• Final balances from the previous period are carried forward
• Recorded as initial balances for the new period
Necessary Adjustments
• Correction of errors
• Prepaid expenses, accrued income, provisions
What is it?
• A set of steps in the accounting process
• Used to record, classify, summarize, and report financial information
• Supports decision-making and financial evaluation