The accounting cycle refers to the process of identifying, analyzing and recording the accounting events of a company. This cycle includes a set of rules to ensure the accuracy and conformity of financial statements. The stages of the accounting cycle involve (1) analyzing transactions, (2) journalizing transactions, (3) posting transactions, (4) preparing an unadjusted trial balance, (5) making adjustments, preparing an adjusted trial balance, (7) preparing financial statements, (8) closing and (9) preparing the post-closing trial balance. Chapters 1-4 of the textbook examined these stages of the accounting cycle. Some other sources describe these stages slightly differently, but the fundamental process is the same. Students will do the following: 1. Select one publicly traded company, such as Microsoft, Amazon or Apple. It can be one of these 3 or a different one. Provide a summary of the company's business. 2. Students will then select 3 of the 9 stages of the accounting cycle and explain how each one would apply to the unique circumstances of the selected company. The following examples are designed to help students think about how they could phrase their explanations. (Students can use one or more of these examples or different ones). a. Example 1: If stage 1 (analyzing transactions) is selected, students could identify and describe the types of source documents that the company may use. .e.g. service contracts, bank statements, invoices etc. b. Example 2: If stage 2 (journalizing transactions) is selected, students could identify and explain the types of accounts that the company may use to post its transactions. e.g. If it is a technology company that was selected, what assets could be included in their equipment account. c. Example 3: If stage 5 (making adjustments) is selected, students could discuss the types of adjustments that could be made while preparing the company's financial statements. e.g. If the selected company has a large number of prepaid expenses, such as insurance, explain how adjusting entries would be used to prepare an adjusted trial balance for this company. 3. Students will then critically analyze the role the accounting cycle plays in the proper functioning of the selected company. In so doing, answer the following questions: Explain why this accounting cycle is important. How does it help to prevent errors? Which external parties rely on the information and why is important to them? The assignment should have a short introduction and conclusion. The accounting cycle refers to the process of identifying, analyzing and recording the accounting events of a company. This cycle includes a set of rules to ensure the accuracy and conformity of financial statements. The stages of the accounting cycle involve (1) analyzing transactions, (2) journalizing transactions, (3) posting transactions, (4) preparing an unadjusted trial balance, (5) making adjustments, preparing an adjusted trial balance, (7) preparing financial statements, (8) closing and (9) preparing the post-closing trial balance. Chapters 1-4 of the textbook examined these stages of the accounting cycle. Some other sources describe these stages slightly differently, but the fundamental process is the same. Students will do the following: 1. Select one publicly traded company, such as Microsoft, Amazon or Apple. It can be one of these 3 or a different one. Provide a summary of the company's business. 2. Students will then select 3 of the 9 stages of the accounting cycle and explain how each one would apply to the unique circumstances of the selected company. The following examples are designed to help students think about how they could phrase their explanations. (Students can use one or more of these examples or different ones). a. Example 1: If stage 1 (analyzing transactions) is selected, students could identify and describe the types of source documents that the company may use. .e.g. service contracts, bank statements, invoices etc. b. Example 2: If stage 2 (journalizing transactions) is selected, students could identify and explain the types of accounts that the company may use to post its transactions. e.g. If it is a technology company that was selected, what assets could be included in their equipment account. c. Example 3: If stage 5 (making adjustments) is selected, students could discuss the types of adjustments that could be made while preparing the company's financial statements. e.g. If the selected company has a large number of prepaid expenses, such as insurance, explain how adjusting entries would be used to prepare an adjusted trial balance for this company. 3. Students will then critically analyze the role the accounting cycle plays in the proper functioning of the selected company. In so doing, answer the following questions: Explain why this accounting cycle is important. How does it help to prevent errors? Which external parties rely on the information and why is important to them? The assignment should have a short introduction and conclusion