Question
What is the final stage of the accounting cycle?
Answers
GPT-4o mini
The final stage of the accounting cycle is the preparation of the financial statements. This stage comes after all transactions have been recorded and adjusted, and after the trial balance has been prepared and verified. The key financial statements produced typically include:
1. **Income Statement** - Shows the revenues and expenses over a specific period, revealing the net income or loss.
2. **Balance Sheet** - Provides a snapshot of the company's assets, liabilities, and equity at a specific point in time.
3. **Cash Flow Statement** - Highlights the cash inflows and outflows from operating, investing, and financing activities during a period.
Once these financial statements are prepared, they are typically reviewed and then issued to stakeholders, such as management, investors, and regulatory authorities.
1. **Income Statement** - Shows the revenues and expenses over a specific period, revealing the net income or loss.
2. **Balance Sheet** - Provides a snapshot of the company's assets, liabilities, and equity at a specific point in time.
3. **Cash Flow Statement** - Highlights the cash inflows and outflows from operating, investing, and financing activities during a period.
Once these financial statements are prepared, they are typically reviewed and then issued to stakeholders, such as management, investors, and regulatory authorities.