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.