0
Why is it important to prepare the financial statements prior to the closing activities?
Wiki User
∙ 11y ago
It'd be far better to end-up with the current transactions and the related financial details while starting over the new one. And with that, the financial statements would do so the needed in order the tax returns, payroll information, etc is vivid for the business to submit whenever required.
This would be the reason for preparing the statements.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
Which statements best describe the activities of the initiating process group and closing process group?
activities the closing process
Which statements correctly describe the activities of the initiating and closing process groups in a projects life cycle?
The initiating process group increases ... The activities of the closing process...
Updating accrual accounting records prior to preparing financial statements is called?
closing process
What effect does an overstatement of inventory have on a company's financial statements?
Overstatement of closing stock will inflate profit and overstatement of opening stock will have an inverse effect.
What tasks are aided by a worksheet?
can be used to collect and organize data for preparing (i) adjusting entries, (ii) closing entries, and (iii) financial statements.
What happens after all the closing entries have posted to the general ledger?
Once all the closing entries have been posted to the ledger it is then time to begin working on the financial statements. A Post-Closing Trial Balance insures that all entries are made properly, at which time if needed such statements as the Balance Sheet and Statement of Owners Equity can be created.
What are examples of matching principle in Psychology?
After closing the financial statements for the year, you, the accountant for a medical center have found that an invoice for $1500.25 was not recorded or paid during the year. Shoud you revise the financial statements to reflect the additional expense? why or why not? Which accounting principle does the above transaction represent?
Duties and responsibilities of senior accountant?
Senior accountants have a number of duties and responsibilities. The are responsible for preparing financial statements, analyzing financial information, and supporting the closing process at the end of every month.
What happens after all the closing entries have been posted to the general ledger?
Once all the closing entries have been posted to the ledger it is then time to begin working on the financial statements. A Post-Closing Trial Balance insures that all entries are made properly, at which time if needed such statements as the Balance Sheet and Statement of Owners Equity can be created.
What will be content of trial balance?
The contents of a trial balance will be your assets, liabilities, and equity accounts and all your ledger (temporary accounts). This is to check for accuracy in your ledger accounts and that your financial statements "balance out'. After you do your "trial balance" you then close your books for the year, closing all temporary accounts which include expenses and revenue (income). Once this is complete you prepare a Post-Closing Trial Balance (post-closing meaning "after closing"). This is to double check that all ledger accounts are closed properly and that your financial statements balance.
What is accounting cycle?
An accounting cycle is basically all of the accounting procedures. This starts with journal entries and ends with the financial statements and closing of temporary accounts.
What is the contents of trial balance?
The contents of a trial balance will be your assets, liabilities, and equity accounts and all your ledger (temporary accounts). This is to check for accuracy in your ledger accounts and that your financial statements "balance out'. After you do your "trial balance" you then close your books for the year, closing all temporary accounts which include expenses and revenue (income). Once this is complete you prepare a Post-Closing Trial Balance (post-closing meaning "after closing"). This is to double check that all ledger accounts are closed properly and that your financial statements balance.Read more: What_will_be_content_of_trial_balance
