ACC 205 Week 2 Discussion 1 - Accounting Cycle 1. Financial...

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Accounting Cycle1. Financial statements are a product of the accounting cycle. Think about two differentcompanies: a manufacturing company, and a retail company. Why would differentcompanies have different accounting cycles? Twocompanies thatcome to mind thatmay have different accounting cycles are General Motors who mmanufactors cars andWalmart who are in the business of retail. Although many businesses have accountingcycles that is based off of the calender years, some businesses chose tohave accountingcycles based off of a fiscal year. A fiscal year is "any yearly period without regard to thecalendar year, at the end of which a firm, government, etc., determines its financialcondition." "fiscal year. (n.d.).Dictionary.com Unabridged. Retrieved November 18,2014, from Dictionary.com website: year"This type of cycle is "chosen to follow natural business cycles" ("Wainwright, S. (Ed.).

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Term
Fall
Professor
RobertCarr
Tags
Accounting, Fiscal Year, Generally Accepted Accounting Principles, Calendar year, Volume I San

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