Steps, Role, Omission, And Financial Statements Of The Accounting Cycle

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Businesses use the accounting to cycle to identify, record, and process any accounting events which may occur during daily business operations and throughout the life of said businesses. Businesses must ensure that all entries recorded are accurately so that one can measure the businesses financial success at a specified time. The purpose of this paper is to discuss in great detail the steps, role, omission, and financially statements of the accounting cycle.
There are a total of ten steps within the accounting cycle. “During a specified amount of time one would first record the beginning account balances if any this includes recording and or journalizing assets the business may have such as cash, equipment, and supplies. Second, one must analyze
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One will want to ensure that they are accurate recording transactions to the appropriate accounts. If one was to omit, journalizing transactions the balance sheet will be off. Each of the accounts will affect the financial statements differently. One will want to ensure that the entries are present and accounted for with the T- accounts. Should one omit an entry on the T accounts, the account balance will be incorrect and can have a negative impact on the financial statements. The omission of any of the accounting cycle steps will significantly impact the financial statements. The financial statements depict the financial standing of a business. These statements are important to investors and financial institutions. By utilizing these statements one can determine if the business has the ability to be profitable and pay off any debt owed. If the financial statements are incorrect, the business could obtain new debt that they unfortunately will not be able to repay. Strategies a business can use to avoid the omission of any of the accounting cycle step would be creating a check list indicating each of the accounting cycle steps taken as they occur, ensuring that the entries are being updated as they occur, and double checking work

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