Question: Journalizing and posting closing entries is a required step in the accounting cycle. Discuss why it is necessary to close the books at the end

Journalizing and posting closing entries is a required step in the accounting cycle. Discuss why it is necessary to close the books at the end of an accounting period. If closing entries were not made, how would the preparation of financial statements be affected?

Step by Step Solution

★★★★★

3.48 Rating (158 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Closing entries are very important in accounting cycle This is because the profit or loss for a fina... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Why are adjusting entries needed at the end of an accounting period?

Why are analytical procedures a required step in audit planning?

Why are adjustments needed at the end of an accounting period?

All of the following are required steps in the accounting cycle except: (a) journalizing and posting closing entries. (b) preparing an adjusted trial balance. (c) preparing a post-closing trial...

All of the following are required steps in the ac- counting cycle except: (a) journalizing and posting closing entries. (b) preparing an adjusted trial balance. (c) preparing a post-closing trial...

All of the following are required steps in the accounting cycle except: (a) journalizing and posting closing entries. (b) preparing an adjusted trial balance. (c) preparing a post-closing trial...

List the following steps of the accounting cycle in their proper order. _________ a. Posting the journal entries. _________ b. Journalizing and posting adjusting entries. _________ c. Preparing the...

List the following steps of the accounting cycle in the proper order: a. Preparing the unadjusted trial balance. b. Preparing the post-closing trial balance. c. Journalizing and posting adjusting...

List the following steps of the accounting cycle in their proper order. Use the form provided in your working papers or a separate sheet of paper. Analyzing business transactions Collecting and...

All of the following are required steps in the accounting cycle except: (a) journalizing and posting closing entries. (b) preparing financial statements. (c) journalizing the transactions. (d)...

(c) Clock pulses needed to control a digital system are generated by a circuit made up of NAND gate, 5002-resistor and 40pF capacitor (i) Draw the clock circuit [3 marks] (ii) Briefly explain how it...

Define pK and pH, and write the Henderson-Hasselbalch equation that relates the two.

Question 2 Efficient Information Systems are always the most effective ones. True False

Hudson Company, which is both a wholesaler and a retailer, purchases its inventories from various suppliers. Additional facts for Hudsons wholesale operations are as follows: a. Hudson incurs...

On December 31, 2022, Mercantile Corp. had a $10,000,000, 8% fixedrate note outstanding, payable in 2 years. It decides to enter into a 2- year swap with Chicago First Bank to convert the fixed-rate...

What does the value-of XSLT element do?

The Mixed Arithmetic- Perceptual (MA-P) model is a componential model of graphic interaction that was developed based on analyses of humans interacting with graphical displays on the computer. The...

Redo Problem 6.2 using the general bearing capacity equation [Eq.(6.28)]. Eq. (6.28) Problem 6.2 A 1.5 m wide square footing is placed at 1 m depth within the ground where c' = 10 kN/m 2 , ' = 258,...

What is its maximum acceleration after picking up four passengers and their luggage adding an additional 400 kg of mass A compact car has a maximum acceleration of 4.0 m/s when it carries only the...

Question i) Journalizing and posting closing entries is a required step in the accounting cycle. Explain the process of closing the books and discuss why it is necessary to close the books at the end...

A. Western Company has a calendar year-end accounting period. On July 1, the company purchased office equipment for $30,000. It is estimated that the office equipment will depreciate $500 each month....

Journalizing and posting closing entries is a required step in the accounting cycle. Discuss why it is necessary to close the books at the end of an accounting period. If closing entries were not...

3. Journalizing and posting closing entries is a required step in the accounting cycle. Discuss why it is necessary to close the books at the end of an accounting period. If closing entries were not...

answer please Question one(40 marks) i)Joumalizing and posting closing entries is a required step in the accounting cycle. Discuss what closing entries are and why it is necessary to close the books...