Title: Explain the steps of the accounting cycle for a merchandising business.
Course: Accounting (12104-I) > Section: Understanding the Accounting Cycle for a Merchandising Business

Explanation should include the following steps:

1. Collect and verify source documents.
2. Analyze each transaction.
3. Journalize each transaction in the appropriate journal.
4. Post transactions to all ledgers.
5. Prepare a schedule of accounts receivable and accounts payable.
6. Prepare a trial balance.
7. Prepare a worksheet.
8. Journalize and post adjusting and closing entries.
9. Prepare a post-closing trial balance.
10. Prepare financial statements.