![\"Steps](\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/5107\/2020\/10\/09234013\/ACStep1-4.jpg\")
\n\nThe double-entry bookkeeping ensures the accuracy of financial reports by putting the emphasis on accuracy with the recording of every single transaction (i.e., for every transaction, the total of the debit amounts must equal the total of the credit amounts). This approach ensures that the accounting equation always remains in balance (i.e., Assets = Liabilities + Owner's Equity).\n\nBy using accounts to summarize the hundreds or thousands of transactions that occur each day, accountants turn data into information that can then be used to create the financial statements.\n\nBut the job isn\u2019t done yet.\n\nBookkeeping is largely a mechanical process, but the next step in the accounting cycle is to take the unadjusted trial balance and to apply critical thinking to the numbers. Are they accurate? Do they fairly represent the results of operations and the financial position of the company? And, are they in accordance with GAAP (or IFRS if you\u2019re an international accountant)?\n\nIn the next module, you\u2019ll tackle the next six steps of the accounting cycle, from adjusting entries to the final closing of the books.\n\n \n\n[caption id=\"attachment_3214\" align=\"aligncenter\" width=\"700\"]![\"A](\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/5107\/2020\/10\/09221756\/TheAccountingCycle.png\")
<\/a> The Accounting Cycle. Click for a larger image.[\/caption]\n","rendered":"In this module, you\u2019ve learned how to identify and use the basic accounting reporting structure and the books of record and how those things relate to each other, from journal entries to ledger to trial balance.<\/p>\n
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The double-entry bookkeeping ensures the accuracy of financial reports by putting the emphasis on accuracy with the recording of every single transaction (i.e., for every transaction, the total of the debit amounts must equal the total of the credit amounts). This approach ensures that the accounting equation always remains in balance (i.e., Assets = Liabilities + Owner’s Equity).<\/p>\n
By using accounts to summarize the hundreds or thousands of transactions that occur each day, accountants turn data into information that can then be used to create the financial statements.<\/p>\n
But the job isn\u2019t done yet.<\/p>\n
Bookkeeping is largely a mechanical process, but the next step in the accounting cycle is to take the unadjusted trial balance and to apply critical thinking to the numbers. Are they accurate? Do they fairly represent the results of operations and the financial position of the company? And, are they in accordance with GAAP (or IFRS if you\u2019re an international accountant)?<\/p>\n
In the next module, you\u2019ll tackle the next six steps of the accounting cycle, from adjusting entries to the final closing of the books.<\/p>\n