Accounting Dictionary

Accounting Cycle

The steps taken each month to process financial transactions

When a company engages in a financial transaction such as buying inventory, we would record that action a journal entry, transfer the entries in the journal into T accounts, record adjusting entries in the journal and the T accounts, transfer the balances of the T-accounts to a trial balance, use the trial balance to create an Income Statement, a Balance Sheet, a Statement of Retained Earnings, and a Statement of Cash Flows, create, journalize, and record closing entries in the T-accounts, and finally create a post-closing trial balance. This is the accounting cycle.

Sign Up to Learn More!

Join our mailing list today to get notified of new discount offers, course updates, Roger CPA Review news, and more!

Scroll to Top
Get Your eBook Today!

Fill out this form to have our eBook sent directly to your email address.

Access Until You Pass

The Elite-Unlimited course provides UNLIMITED continuing access to your course materials until you pass the CPA Exam! How does it work? Upon activating your course, you will have an initial 36 months of access. You can then renew your subscription as many times as you need to pass your exams—for FREE. Simply click the “renew” option in your student account and you can continue studying your high-quality course materials without losing any of your data and course progress.

Renewal Instructions

  •   Please purchase a renewal using the "Renew" option from the My Account page
  •   To qualify for renewal pricing, course must be renewed before it expires
  •   All renewals are effective from the current expiration date and cannot be deferred
  •   Test information cannot be reset (deleted) with renewal unless eligibility criteria is met (see Help page)