Presentación en ingles sobre el ciclo contable

Presentación universitaria sobre el ciclo contable respecto a la asignatura de ingles

1. UNIVERSIDAD TECNICA ESTATAL DE QUEVEDO
FACULTAD DE CIENCIAS EMPRESARIALES
CARRERA DE CONTABILIDAD Y AUDITORIA
ENGLISH IV
Tittle:
Accounting Cycle in General Accounting
Group members:
•Caicedo Cortez Kimberly Alanis
•Cedeño Lara Jeremy Alexander
•Cusme Ortiz Gregorio Alexander
•Ganchozo Rendón Jandri Andrés
•Garcia Leon Keni Anai
•Vélez Lascano María Patricia
CLASS:
4TO CONAUD-A
Date:
June 28, 2024

2. Table of Contents:
TheAccountingCycle (Caicedo Cortez Kimberly Alanis)
Step 1: Analyze Transactions (Caicedo Cortez Kimberly Alanis)
Step 2: Record Transactions in the Journal (Cedeño Lara Jeremy Alexander)
Step 3: Post Transactions to the Ledger (Cedeño Lara Jeremy Alexander)
Step 4: Prepare a Trial Balance (Ganchozo Rendón Jandri Andrés)
Step 5: Prepare Adjusting Entries (Cusme Ortiz Gregorio Alexander)
Step 6: Prepare Adjusted Trial Balance (Garcia Leon Keni Anai)
Step 7: Close Temporary Accounts (Vélez Lascano Maria Patricia)

3. TheAccountingCycle
Theaccountingcycleisaseriesofstepsusedtorecord,classify,
andsummarize financialtransactions.Itisacontinuousprocess
thathelpsbusinessestrack theirfinancialperformanceand
position.
Theaccountingcyclebeginswiththeidentificationofbusiness
transactionsand endswiththepreparationoffinancial
statements.Eachstepinthecycleis essentialforensuringthe
accuracyandreliabilityoffinancialinformation.

4. Step 1: Analyze Transactions
IdentifytheBusinessActivity
Thefirststepistoidentifythebusinessactivitythathasoccurred.
DeterminetheAccountsAffected
Oncethetransactionisidentified,determinetheaccountsthatare
affected.
ApplytheAccountingRules
Afteridentifyingtheaffectedaccounts,applytheaccountingrulesto
determinethedebitand creditamounts.
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5. Step 2: Record Transactions in the Journal
Ajournalisachronologicalrecord ofallbusinesstransactions.Everytransaction is recordedin
thejournalwitha briefdescriptionandthenposted tothecorrespondingaccountsintheledger.
IdentifyAccounts
Eachtransactioninvolvesatleasttwo
accounts.
Debit/Credit
Theaccountsaredebitedorcrediteddependingonthetypeof
transaction.
RecordDetails
Eachjournalentryincludesadate,description,and
thedebitandcreditamounts.
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6. Step 3: Post Transactions to the Ledger
OrganizeTransactions
Thegeneralledgerorganizesalltransactionsbyaccount.
UpdateAccountBalances
Thepostingprocessupdatesaccountbalances,reflectingtheimpactofeach
transaction.
MaintainFinancialVisibility
Thegeneralledgerprovidesacentralizedrepositoryforallfinancial
information.
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7. Step 4: Prepare a Trial Balance
Atrialbalanceisalistofalltheaccountsinthegeneralledgerwith
theirdebitor creditbalances.Itispreparedtoensurethatthetotal
debitsequalthetotal credits.Thisbalanceisacrucialstepinthe
accountingcycleasithelpsidentify anyerrorsinrecording
financialtransactions.

8. Step 5: Prepare Adjusting Entries
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IdentifyNecessaryAdjustments
Adjustingentriesareessentialforensuringthatfinancialstatementsaccuratelyreflectthe
company'sfinancialposition.
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RecordAdjustingEntries
Oncetheadjustmentshavebeenidentified,theyneedtoberecordedinthejournal.
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UpdateLedgerAccounts
Aftertheadjustingentrieshavebeenrecordedinthejournal,theyneedtobepostedtothe ledger.

9. Step 6: Prepare Adjusted Trial Balance
Theadjustedtrialbalanceisalistofallaccountsandtheirbalancesafteradjustingentrieshavebeenmade.Thisdocumenthelpsto
ensurethattheaccountingequation(Assets=Liabilities+Equity)remainsbalanced.It'salsocrucialforpreparingfinancialstatements
liketheincomestatementandbalancesheet.
Prepareadjustingentries
Adjustingentriesupdateaccountsfortransactionsthathaven'tbeen
recordedyet.
Updateaccountbalances
Theadjustedtrialbalancereflectsthenewbalancesafter
adjustingentries.
Checkaccountingequation
Ensuresthattheaccountingequationremains
balanced.
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10. Step 7: Close Temporary Accounts
IncomeSummary
TheIncomeSummaryaccountisatemporaryaccountusedtosummarizeallrevenues and
expenses.
ExpenseAccounts
Expenseaccountsaretemporaryaccountsthattrackthecostofgoods sold,
operatingexpenses,andotherexpensesincurredduringthe accountingperiod.
RevenueAccounts
Revenueaccountsaretemporaryaccountsthat track
salesandotherincomeearnedduringthe accounting
period.
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11. Step 7: Close Temporary Accounts
RevenueAccounts
Revenueaccountsaretemporaryaccountsthatreflecttheincomegeneratedby
abusiness. Theseaccountsareclosedattheendoftheaccountingperiodto
transfertheirbalancestothe retainedearningsaccount.
ExpenseAccounts
Expenseaccountsaretemporaryaccountsthatrepresentthecostsincurredbya
businessinthe courseofitsoperations.Theseaccountsarealsoclosedatthe
endoftheaccountingperiod.
DividendsAccount
Thedividendsaccountisatemporaryaccountthatrepresentsthedistributions
ofprofitsmade toshareholders.Thisaccountisalsoclosedattheendofthe
accountingperiod.
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