Accounting is the process of identifying, recording and communicating information to interested users. Financial Statements, such as the balance sheets, income statements, etc. must follow GAAP or United Stated GAAP. GAAP or Generally Accepted Accounting Principles is a set of principles that gives accountants guidance when performing the accounting cycle. The accounting cycle is a lengthy process. The eight steps in the accounting cycle are as follows: identify the transactions, journalize the transactions, post it to the ledger, unadjusted trial balance, adjusting entries in the worksheet, adjusted trial balance, generate financial statements and then close the entries. Before the invention of the computer, accountants performed the…show more content… |