Description

The Financial Reporting Cycle of a business does not process transactions as do the other cycles that have been described. Rather, it obtains accounting and operating information from other cycles and analyzes, evaluates, summarizes, reconciles, adjusts, and reclassifies such information so that it may be reported to management and/or outsiders.

From an accounting standpoint, journal entries are received by the financial reporting cycle from the transaction processing cycles and posted to the general ledger. The general ledger accounts are reconciled to supporting information, analyzed, and revalued where appropriate.

The end products of a financial reporting cycle usually include financial statements prepared in accordance with generally accepted accounting principles.

Course Key Concepts: Internal Accounting Controls, SOX 404, ICFR, Internal Control over Financial Reporting, Independent Public Accountants, Internal Auditors, Business Cycles, Treasury, Expenditure, Purchasing, Payroll, Conversion, Revenue.