At Up Style, a mall clothing store, the manager has examined the source documents, recorded all the store's transactions in an accounting journal, and posted the recorded transactions. What is the final step the manager needs to do to complete the accounting cycle?

Question

Business

Sierra Fitzpatrick

21 October, 04:57

At Up Style, a mall clothing store, the manager has examined the source documents, recorded all the store's transactions in an accounting journal, and posted the recorded transactions. What is the final step the manager needs to do to complete the accounting cycle?

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Answers (2)

Know the Answer?

Franklin · Answer 1

prepare the financial statements

Explanation:

The accounting cycle is defined as the process of identifying, analyzing, recording, and reporting all the business's financial transactions.

For a small store the most important financial statements are the income statement (used to determine taxes) and the balance sheet. The income statements includes mostly temporary accounts: revenues, expenses, net income or losses, that must be closed at the end of the accounting period and they start from 0 the next period. The balance sheet includes permanent accounts like assets, liabilities and equity.

Jacob Meadows · Answer 2

The correct answer is prepare financial statements.

Explanation:

The financial statements are the documents that the company must prepare at the end of the accounting year, in order to know the financial situation and the economic results obtained in its activities throughout the period.