The steps of the accounting cycle for a manufacturing company are different from those used for a merchandise company.

Accounting Cycle

For each accounting period, the process that begins with the recording of business transactions or procedures into a journal and ends with the completion of a post-closing trial balance.

Manufacturing Company

A type of company that produces finished goods from raw materials through the use of labor and machinery.

Merchandise Company

Business that buys a product from a manufacturing company to sell to its customers.