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The normal sequence of flow of accounting data typically starts with the identification and recording of transactions in journals, known as journal entries. These entries are then posted to the general ledger, where they are categorized into accounts. From the ledger, a trial balance is prepared to ensure that debits equal credits, followed by the preparation of financial statements such as the income statement, balance sheet, and cash flow statement. Finally, the results are analyzed and reported to stakeholders for decision-making.

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