Accounting processing cycle is big process . it includes many steps but very first step in the accounting processing cycle is to Analyze the Transaction

The term Analyze transaction includes following things

First of all determine accounts affected i.e.liability, assets,owner’s capital, revenue,withdrowals etc.

Analyze Account balance that increse or decrease due to transaction made

Show increase/Decrease by debit or credit

Analyzing financial transactions involves identifying which accounts have been affected and by how much. Double-entry accounting requires that these changes be labelled as debits and crdit