Explain the concept and importance of the accounting cycle. Describe each step of the accounting cycle, from journal entries to the preparation of financial statements, and discuss how each step contributes to the accuracy and completeness of financial reporting.

The accounting cycle involves a series of steps to record and process financial transactions, culminating in the preparation of financial statements. Detail each step, including journalizing transactions, posting to the ledger, preparing trial balances, making adjusting entries, and generating financial statements. Discuss how these steps ensure accurate and complete financial reporting, facilitate error detection, and provide a systematic approach to recording financial activity.