Chapter 1, Problem 2Q

To determine

Accounting Process:

The process of accounting can be defined as a series of activities, which are initiated at the opening of a transaction and accomplished with the closing of books. The series of activities involves identifying, recording, and communicating financial transactions. The order in which these activities are performed is usually termed as the accounting process.

The process of accounting operates in the form of a cycle, hence, the steps of accounting activities are also followed in the cyclical order. The cyclical order involves starting at the beginning of a transaction, until the time when financial results are derived subsequent to the preparation of the final accounts at the end of the accounting year. The accounting cycle operates similarly on each accounting year.

The basic steps in the accounting process.