Question

Being an accountant of Tawaqal Agro limited you are about to make the financial statements for the

year end 2021, what are the main points you will have to keep in mind while preparing the financial

statements of Tawaqal Agro limited? And to whom you will prepare your financial statements and why?

Justify your answer.​

Answer 1

Answer:

The accounting cycle is a process designed to make financial accounting of business activities easier for business owners.

There are usually eight steps to follow in an accounting cycle.

The closing of the accounting cycle provides business owners with comprehensive financial performance reporting that is used to analyze the business.

The eight steps of the accounting cycle are as follows: identifying transactions, recording transactions in a journal, posting, the unadjusted trial balance, the worksheet, adjusting journal entries, financial statements, and closing the books.