The accounting cycle followed each period by a company includes recording transactions, storing the data, organizing the information, summarizing the events and arrangements, adjusting the accounts, reporting the accounting information in financial statements, and then closing the books.

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The accounting cycle is a series of steps starting with recording business transactions and leading up to the preparation of financial statements. This process reflects the mentioned activities such as recording, organizing, summarizing, adjusting, reporting, and closing the books, which are essential for accurately capturing a company's financial performance and position during a specific period.

The Accounting Cycle Followed Each Period by a Company Includes