Question

At Up Style, a mall clothing store, the manager has examined the source documents, recorded all the store's transactions in an accounting journal, and posted the recorded transactions. What is the final step the manager needs to do to complete the accounting cycle

Answer 1

Answer: The manager needs to prepare financial statements

Explanation:

Financial Statements are written reports prepared by a company's manager to show the business activities, financial performance and financial standing or position at any time which includes a balance sheet, income statements, statement of cash flows and sometimes, the owner's equity.

Financial analysts depend on financial data to weigh a company's performance and make real presumptions about its future in regards to the company's stock price.

A company's financial statement can be found in an An annual report which shows a company's trusted and audited financial data (which must have been audited by government or accountants, to ensure its accuracy for tax, or investing purposes.)

Therefore Financial statement is a compulsory step after which the source documents have been examined, recorded and posted.