Why is it important that business people know the accounting cycle? Keep in mind, there is an accounting cycle for monthly statements and finalizes with the ending of the accounting cycle with annual reports, which in many cases are audited by independent auditors. How does monthly statements and annual reports relate to Wall Street, or investors, in general? How are monthly statements and annual reports relate to taxes? ...relate to management? Review the learning objectives or outcomes for the chapter you are working on and what have you learned about it and how it might relate to an actual business or decision-maker?