The Accounting CycleThe accounting cycle is made up of the following ten steps:1. Analyze and classify events.2. Diary of the event.3. Registration in the register.4. Make an unadjusted trial balance.5. Make adjusting entries.6. Taking an adjusted trial balance.7. Prepare the budget.8. Complete the closing entries and record them in the log.9. Take a trial balance after closing.10. If necessary, reverse the entries and record them in the log. This document will discuss these steps in detail. Since I work from home, I am not currently involved in any of the accounting cycle steps. The examples I will provide in this document will come from various jobs I have done in the past. The first step is to analyze and classify the events. In order to enter transactions, the recorder must first decide what needs to be recorded. An event should be recorded “if it is measurable, relevant, and reliable” (Kieso, Weygant, & Warfield, 2004). While there are some events that increase company assets, not all of them can be recorded. For example, hiring a highly skilled employee can be viewed as acquiring an asset, but there is no way to measure the asset, so it is not recorded. In my experience, management usually makes these decisions. The original documents are compiled and delivered to the accounting department. The second step is to enter the transactions for the period in the appropriate journals. This step involves taking accounting records, assigning each to an asset, liability, equity, expense, or income account(s) for debit and credit. This can be done by almost anyone. I've had jobs where the bookkeeper records journal entries and finds out which accounts are affected. I've also had jobs where everyone from a receptionist to a staff accountant takes this step. If the person making the accounting records does not have accounting experience or is not familiar with the accounts involved, the person presenting the original documents will note which accounts should be debited and which should be credited. This practice makes journal entries little more than data entry, which can be done by almost any employee. The third step, register entry, is usually performed by an accountant or supervised by an accountant. Before publication, the journal entries are reviewed by an accountant for accuracy and then, for each batch, the person who entered them is given the corrections to make or told to publish them..