Asked by Hazeline Sutana on Jun 16, 2024
Verified
An end-of-period spreadsheet includes columns for
A) adjusting entries
B) closing entries
C) reversing entries
D) adjusting and closing entries
Reversing Entries
Journal entries that are recorded on the first day of the next period that are the exact opposite of the related adjusting entry from the last day of the prior period.
Adjusting Entries
Accounting records entries documented at the conclusion of an accounting cycle to distribute revenues and expenses to the period they genuinely took place.
Closing Entries
Journal entries made at the end of an accounting period to transfer temporary accounts' balances to permanent accounts and prepare the company's books for the next period.
- Understand the purpose and components of the end-of-period spreadsheet in the accounting cycle.
Verified Answer
SC
Stacy CorrietteJun 22, 2024
Final Answer :
A
Explanation :
An end-of-period spreadsheet includes columns for adjusting entries, which are made to update the accounts before preparing the financial statements. Closing entries are not included in the end-of-period spreadsheet; they are made after the financial statements are prepared to reset the balances of temporary accounts. Reversing entries are optional and are made at the beginning of the next accounting period, not included in the end-of-period spreadsheet.
Learning Objectives
- Understand the purpose and components of the end-of-period spreadsheet in the accounting cycle.