Asked by Amber Lloyd on May 12, 2024
Verified
All entries in the accounting books must be made by the last day of the accounting period so that the firm may close their books.
Accounting Books
Official ledgers or books that record all financial transactions of a business, forming the basis for the company's financial statements.
Accounting Period
A specific time span during which financial activities are recorded and compiled into financial statements, usually a year or a quarter.
- Recognize the classification and effects of various accounting practices and concepts on financial statements.
Verified Answer
NS
Naved SulaimanMay 18, 2024
Final Answer :
False
Explanation :
While it is recommended to have all entries made by the last day of the accounting period, adjustments and corrections can still be made after that date. The firm may also choose to leave their books open for a certain period of time after the accounting period ends in order to make adjustments or complete necessary tasks.
Learning Objectives
- Recognize the classification and effects of various accounting practices and concepts on financial statements.
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