There are 10 steps in the Accounting Cycle as follows:

1. Transactions are analyzed and recorded in the journal (journal entries)

2. Transactions are posted to the ledger accounts

3. An unadjusted trial balance is prepared

4. Adjustment data are assembled and analyzed

5. An optional end-of-period spreadsheet is prepared (see exhibit 12, page 176)

6. Adjusting entries are journalized and posted to the ledger

7. An adjusted trial balance is prepared

8. Financial statements are prepared

9. Closing entries are journalized and posted to the ledger

10. A post-closing trial balance is prepared

In your own words, describe the importance of ONE of the steps in the accounting cycle. Discuss the benefit that step provides to external decision makers (customers, vendors, investors, etc). Discuss what would happen if that step was omitted.