Question
Asked Nov 10, 2019
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Why is the accounting cycle important to business? (specific examples needed of why certain steps are necessary)

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Expert Answer

Step 1

Accounting cycle: The accounting cycle refers to the entire process of recording the accounting transactions of an organization and then processing them. The accounting cycle starts when a transaction takes place and it ends at the time when these transactions are recorded in the financial statements of the company.

Step 2

Steps in the accounting cycle:

Step 1: Analysing the transactions.

Step 2: Journalizing the transactions.

Step 3: Posting the entries to T-accounts.

Step 4: Preparing the unadjusted trial balance.

Step 5: Preparing the adjusting entries.

Step 6: Preparing the adjusted trial balance.

Step 7: Preparati...

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