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Activity: Recording business transactions in a journal. Purpose: To systematically document financial activities in chronological order.

Activity: Transferring journal entry information to ledger accounts. Purpose: To update account balances for preparing financial statements.

Activity: Summarizing the balances of all ledger accounts. Purpose: To verify that the sum of debits equals the sum of credits and prepare for financial statement construction.

Activity: Making journal entries to update account balances before financial statements. Purpose: To ensure revenues and expenses are recognized in the period they occur.

Activity: Recompiling the trial balance after posting adjusting entries. Purpose: To confirm that debits still equal credits and prepare the final financial statements.

Activity: Compiling income statement, balance sheet, and statement of cash flows. Purpose: To communicate financial information to external users.

Activity: Zeroing out temporary accounts to prepare for the next period. Purpose: To transfer income and expense account balances to permanent accounts.

Activity: Creating another trial balance after closing entries are made. Purpose: To check the integrity of the closing process and the new period's starting figures.

Activity: Optional entries that reverse certain adjusting entries. Purpose: To simplify the recording of transactions in the next period.

Activity: Recognizing revenues earned or expenses incurred but not yet recorded. Purpose: To match revenues and expenses to the current accounting period.

Activity: Postponing the recognition of revenue or expense that has been received or paid in advance. Purpose: To recognize revenue or expenses in the period they are earned or incurred.