This is what we call Forward declaration and in C++ it only requires you to declare the prototype of the function before attempting to use it, instead of defining the whole function.:
Taking as example the following two pieces of code:
CODE A:
#include <Arduino.h>
void setup(){}
void AA(){
// any code here
}
void loop(){
AA();
}
CODE B:
#include <Arduino.h>
void setup(){}
void loop(){
BB();
}
void BB(){
// any code here
}
Strictly speaking C requires that functions be forward declared for the compiler to compile and link them. So in CODE A we do not have declared the function but it defined, which makes it legal for proper C code. But the CODE B has the function definition after the loop, which would be illegal for plain C. A solution would be the following one:
#include <Arduino.h>
void BB();
void setup(){}
void loop(){
BB();
}
void BB(){
// any code here
}
This, however, to fit the Arduino script format of having a void setup() following from a void loop(), required Arduino to include a script on its IDE that automatically looks for functions and generate prototypes up top for you so you do not need to worry about it. So despite being written in C++, you will NOT see Arduino sketches using Forward declaration often in their sketches, as it works out fine and it is often easier to read having first setup() and loop().