Reversing entries are used to bring the books back to balance. Failure to make reversal entries could result in errors being added to the financial statements. It would be much more difficult to make well-informed budget decisions if spending was not accurately documented. Inaccurate financial reporting and a challenge in deciding how to allocate resources within the budget are two of the possible repercussions for the company. How it would calculate the company overall performance?

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Calculating a companys overall performance involves analyzing various financial metrics and indicato... View the full answer