What are the steps of the accounting cycle? Describe each in your own words using specific examples.

Overview: In this short paper, you will evaluate the importance of the accounting cycle by illustrating the products of that cycle and identifying the potential forproblems if it is not properly followed. There is only one short paper assignment in this course, and it has a unique purpose: You can think of this exercise asestablishing the conceptual framework for your remaining work in the problem sets and Final Project I. Essentially, in those activities, you will be engaging in thespecific tasks of the accounting cycle and applying detailed processes on a practical level. Therefore, it is important to grasp the larger picture in this short paperso that you will be able to connect these smaller tasks and details and recognize their larger significance.Prompt: In a well-crafted short paper, respond to the following questions: What are the steps of the accounting cycle? Describe each in your own words using specific examples. What are the outputs of the accounting cycle? Why are they important? Identify and explain the purpose of each financial statement, including howthey are interrelated. Why is the accounting cycle important to a business? Evaluate the significance of the accounting cycle in terms of its practical relevance for businesses.In your response, be sure to give specific examples of why certain steps are necessary. Address at least three different steps in your evaluation.