Introduction to Basic Accounting by Tarannum Khatri - HTML preview

Financial transactions are recorded in four major accounting cycles:

Revenue cycle

Purchase

Payroll

General journal

We can elaborate various major cycles as per under:

Revenue cycle: In this cycle, order entries , cash receipts and account receivables are covered.

Purchase cycle: In this cycle, Purchase orders/ purchases, cash expenses or cheque and account payables are covered.

Payroll cycle: In this cycle, all the data regarding employees payroll (Employees salary) is recorded.