Accounting cycle

Sometime , you read this term in any book about accounting cycle , But you would not research of this term . Actually accounting cycle is very simple term .It means that all the activities in accounting will absorb in first point and then it make accounting cycle .This term is very useful for an accountant because an accountant is man who maintain accounts.



Suppose Ram purchases goods from any company this transaction when comes in the front of an accountant , he records it after this he see its result on his final accounts but in last automatically it support to completing the whole accounting cycle . In other words any financial transaction is the beginning point of accounting cycle and an accountant must give importance to each transaction of business.