Accounting involves recording financial transactions, posting them to ledgers, preparing an interim trial balance and final financial statements, and communicating this information to internal and external users. The key steps are recording transactions, posting to ledgers, preparing an interim trial balance and final accounts, and distributing financial information to users inside and outside the company.

1. Input
Output
Economic events
measured in
financial terms
PROCESS OF ACCOUNTING
Accounting Cycle
Recording
transactions
in the books
of original
entry
Posting
To
Ledgers
Preparation
Of
Trail Balance
Preparation
Of
Final
Accounts
Communicating
Information to
Users
Internal Users External Users