________ is the most important phase of accounting cycle.

Bank Reconciliation Statement

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Preparing financial statement

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Trial balance

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Ledger Posting

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Solution

The correct option is A Preparing financial statement
All the business transaction once recorded has no meaning if these are not converted in to a financial statement. Hence preparing of a financial statement i.e. Profit & Loss account and Balance Sheet is an important phase of accounting cycle. Preparing financial statement is the concluding point to know the status of the business.

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