Okay, let's talk a little bit about the accounting cycle. Because for you to go out today and and gather up everything that you own and make a balance sheet is interesting for you to analyze the last week of your activity and decide whether you'd spent more or less. That's interesting. Neither one of those is too hard to do. If you're covering that shorter period of time and you're dealing with, you know, your personal assets, it's not that difficult. The problem is trying to produce this again and again and again over time.

That's what leads to the accounting cycle. The accounting cycle is what allows us to accumulate these transactions and periodically produce the balance sheet and the income statement. The the accounting cycle really starts with the balance sheet. The income statement tells us what happens between two balance sheet dates, two periods of time, how Did those How did things change between two periods of time because an income statement covers a period of time. This little graphic kind of gives you some of the basic steps in the accounting cycle right? We have the execute business events.

We have create journal entries, post to the general ledger, create the trial balance and create financial statements. We'll go through each one of those in a bit more detail.