Financial statements are an essential part of the accounting cycle. They provide information about a company's financial performance and are used by various stakeholders, including investors, creditors, and management, to make informed decisions.

The accounting cycle involves several steps that culminate in the preparation of financial statements. These steps include:

Recording transactions: All business transactions, such as sales, purchases, and payments, are recorded in the company's books of accounts.

Adjusting entries: At the end of the accounting period, adjusting entries are made to account for accrued or prepaid expenses, unearned or accrued revenue, and other items that need to be recorded.

Closing entries: Temporary accounts, such as revenue and expense accounts, are closed at the end of the accounting period to prepare for the next period.

Preparation of financial statements: After the closing entries are made, financial statements are prepared. Statements of cash flows, balance sheet, and income statement are the three main financial statements.

The income statement shows the company's revenues, expenses, and net income or loss for the accounting period.
The company's assets, liabilities, and equity are displayed on the balance sheet as of the end of the accounting period.
Analyzing and interpreting financial statements: Once the financial statements are prepared, they can be analyzed and interpreted to gain insights into the company's financial performance, liquidity, and solvency.
Overall, the financial statements are an essential part of the accounting cycle as they provide a snapshot of a company's financial health, enabling stakeholders to make informed decisions.

Graduates can anticipate a wide range of professional prospects, as well as competitive wages and benefits, if they have a solid foundation in accounting and taxation principles

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