The first required step in the accounting cycle is to

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The first required step in the accounting cycle is to analyze transactions which means to identify, measure and record economic events that affect the financial position of the company. This step lays the foundation for the remaining steps in the accounting cycle, such as journalizing transactions, posting transactions, preparing financial statements and closing the books. Reversing entries are not always necessary and are only prepared at the beginning of the next accounting period, while journalizing and posting transactions occur after the analysis step.

The First Required Step in the Accounting Cycle Is to