Accounting and Finance Foundations

Unit 7

Accounting and Finance Foundations Unit 7: Financial Statements 540

Financial Statements

Chapter 18

Student Guide

In Units 5 and 6, we discussed the first four steps of the accounting cycle in detail. Those steps, you’ll

recall, are:

Step 1. Analyzing Transactions and Source Documents

Step 2. Journalizing Entries in the General Journal

Step 3. Posting the General Journal to the General Ledger

Step 4. Prepare adjusting entries, vouchers, and the trial balance.

In Unit 7, we move on to Step 5 of the accounting cycle, which involves preparing the financial statements.

Prepare Adjusting

Entries, Vouchers, and

the Trial Balance