The financing cycle is<\/strong><\/a> a series of events when an accountant produces financial reports. <\/p><\/p>\n\n\n\nIn practice, the number of steps may vary depending on other sources. This is not a problem because it will eliminate the essence of the cycle. <\/p><\/p>\n\n\n\n
As long as it continues to accompany the analysis of transactions, transaction journals, ledgers, trial balances and financial reports. <\/p><\/p>\n\n\n\n
Table of Contents<\/p><\/p>\n\n\n\n
Financial Cycle Is: These are the 5 Steps\u00a0<\/h2>\n\n\n\n
As an important process, the financing cycle<\/em><\/strong> is<\/strong> something that must be considered to produce accountable financial reports. <\/p><\/p>\n\n\n\nThe following are 5 steps in the financial cycle that occur in economic activities, namely: <\/p><\/p>\n\n\n\n
Transaction Analysis\u00a0<\/h3>\n\n\n\n
Business transactions are economic events that are always recorded by accountants, they can come from outside or inside the company. <\/p><\/p>\n\n\n\n
However, it should be understood that not all economic events are records of business transactions. There are 5 types of business transactions, including: <\/p><\/p>\n\n\n\n
\n- Transactions related to capital participation. <\/li>\n\n\n\n
- Transactions relate to asset purchases. <\/li>\n\n\n\n
- Transactions related to economic benefits. <\/li>\n\n\n\n
- Transactions relate to the receipt of income. <\/li>\n\n\n\n
- Transactions related to load consumption. <\/li>\n<\/ul>\n\n\n\n
Transaction Journal\u00a0<\/h3>\n\n\n\n
After receiving economic events in the form of business transactions, an accountant must record them in a notebook according to chronology. <\/p><\/p>\n\n\n\n
This record is called a transaction journal, while the activity is called posting. <\/p><\/p>\n\n\n\n
Ledger\u00a0<\/h3>\n\n\n\n
The next step of the accounting cycle is the general ledger. The transition from step two to step three is called the posting process. <\/p><\/p>\n\n\n\n
Accounting staff who want to see the ledger they have created just look for the post button on the electronic system. <\/p><\/p>\n\n\n\n
Then, a ledger will automatically be formed. Basically, all journals formed will be grouped into several tables according to their respective accounts. <\/p><\/p>\n\n\n\n
Trial balance\u00a0<\/h3>\n\n\n\n
Creating a trial balance or work sheet is the fourth step which aims to verify whether the debit and credit balances agree. <\/p><\/p>\n\n\n\n
The trial balance will show all accounts in tabular form. Including showing the final balance of the ledger for each account. <\/p><\/p>\n\n\n\n
Adjusting journal entry\u00a0<\/h3>\n\n\n\n
Some events involving economic transactions require adjustments. Adjusting journals have several functions, namely: <\/p><\/p>\n\n\n\n
\n- An income statement that can report income during the accounting period. <\/li>\n\n\n\n
- The balance sheet also reports receivables at the end of the accounting period. <\/li>\n\n\n\n
- The income statement also reports costs and losses. <\/li>\n\n\n\n
- The balance sheet reports liabilities at the end of the accounting period. <\/li>\n<\/ul>\n\n\n\n
It can be concluded that the financing cycle<\/em><\/strong> is<\/strong> an important part of economic activity, therefore Telkom University studies it. <\/p><\/p>\n","protected":false},"excerpt":{"rendered":"To understand accounting properly, you need to know the accounting cycle. The financing cycle is a series of events when an accountant produces financial reports. In practice, the number of steps may vary depending on other sources. This is not a problem because it will eliminate the essence of the cycle. As long as it continues to accompany […]<\/p>\n","protected":false},"author":32,"featured_media":138418,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"wds_primary_category":182,"footnotes":""},"categories":[182],"tags":[1853,1854,1855,1856,1857,1858,1859],"class_list":["post-143417","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs-en","tag-financing-cycle-en","tag-financing-cycle-adalah-en","tag-manajemenkeuangan-en","tag-manajemenrisikokeuangan-en","tag-pendanaanbisnis-en","tag-perencanaankeuangan-en","tag-sikluspembiayaan-en"],"blocksy_meta":[],"gutentor_comment":0,"_links":{"self":[{"href":"https:\/\/it.telkomuniversity.ac.id\/en\/wp-json\/wp\/v2\/posts\/143417","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/it.telkomuniversity.ac.id\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/it.telkomuniversity.ac.id\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/it.telkomuniversity.ac.id\/en\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/it.telkomuniversity.ac.id\/en\/wp-json\/wp\/v2\/comments?post=143417"}],"version-history":[{"count":0,"href":"https:\/\/it.telkomuniversity.ac.id\/en\/wp-json\/wp\/v2\/posts\/143417\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/it.telkomuniversity.ac.id\/en\/wp-json\/wp\/v2\/media\/138418"}],"wp:attachment":[{"href":"https:\/\/it.telkomuniversity.ac.id\/en\/wp-json\/wp\/v2\/media?parent=143417"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/it.telkomuniversity.ac.id\/en\/wp-json\/wp\/v2\/categories?post=143417"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/it.telkomuniversity.ac.id\/en\/wp-json\/wp\/v2\/tags?post=143417"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}