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

★★★★★

3.40 Rating (153 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

One of the main necessities for closing books at the end of accounting period is to ... 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!

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...

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

Why are analytical procedures a required step in audit planning?

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. preparing a work sheet. b. journalizing and posting closing entries. c. preparing an adjusted trial balance. d. preparing a...

it is sas and math it is like Q I FOUND here but extra Q i need help with a b c d I want to update file also but I can not but it is same what in website thanks 4. The Internet site...

Under what conditions is it best that an exporter use an export management company and when is the manufacturer's export agent a better choice?

The line 2x + y = 6 intersects the circle x ^ 2 + y ^ 2 - 12x - 8y + 27 = 0 at the points A and B. a Find the coordinates of the points A and B. b Find the equation of the perpendicular bisector of...

Determine the orthogonal trajectories of the hyperbola 3xy = 5 at the point (2, 5/6). Sketch the curves.

Interpret the structure of the hypothetical compound, MxJy, in terms of lattice points occupied by the ions, coordination number, and coordination environment. The structure is shown at right, gray...

In a family with two children, find the mean of the number of children who will be girls.

Christine Evans established the Evans Family Trust in 2000 with XYZ Pty Ltd as the corporate trustee. Christine and her husband Fred are the directors of the trustee company. The trust holds a...

What is an example of an environmental transmission? Swimmer's Ear MRSA Malaria Hanta virus

Hi , I have done all the journals and entires in general ledgers as well as subsidiary (subsidairy is matching . problem is in unadjusted trial balance which is not matching please help where my...

Need ONLY an answer to Part C, step 1, questions 1 and 3. Term Project Part A: Understanding Financial Statements Locate and use an annual report STEP 1: The Company Assigned to you Find the most...

Accounting Cycle Project 12e - Solid Footing Pictures 01-18. Instructions: You will be recording the July 2019 transactions for Lenny's Lawn Service. Inc. After recording the July transactions you...

Project Goal The goal of this graded project is to create the following financial statements for J & L Accounting, Inc.: Balance sheet Income statement Statement of retained earnings Post-closing...

Accounting cycle project. see attachment. 45$ Page 1 of 19 Business 1A Accounting Cycle Project Name: ______________________________ On October 1, 2013, Adrian Lopez launched a computer services...

I was wondering if someone could help me with Bank Reconciliation. I am having a hard time understanding what this question is asking and how to do this. I have attached a file of what I am working...