Understanding the flow of accounting information is crucial for accurate financial reporting and analysis.

Explain the requirement of the accrual basis of accounting under GAAP. Why is it important for stakeholders to have access to financial information that adheres to this standard?

Describe the flow of accounting information from the unadjusted trial balance to the adjusted trial balance and ultimately to the financial statements. What key adjustments are typically necessary during this process? What insights can these statements provide about a company$$s financial performance?