The accounting cycle is the process of recording, classifying and summarizing financial transactions of a business in a systematic way. It involves a series of steps, including analyzing transactions, journalizing them, posting to a ledger, preparing a trial balance, adjusting entries, preparing financial statements, and closing the books for the period. A successful completion of the accounting cycle is crucial for businesses to maintain accurate financial records and comply with accounting standards and regulations. This requires specialized knowledge and skills in accounting principles, software tools, and financial analysis.
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