Asked by Sygie Lamigo on Jun 20, 2024
Verified
Adjustments must be entered in the journal and posted to the ledger after the work sheet is prepared.
Adjustments
Modifications made to the accounting records or financial statements to accurately represent the financial position of an organization.
Journal
A record where all financial transactions are initially noted before being transferred to specific accounts in the ledger.
- Understand the function and preparation of adjusting entries within the accounting cycle.
Verified Answer
TJ
Tiffany JonesJun 23, 2024
Final Answer :
True
Explanation :
The purpose of preparing a work sheet is to facilitate the preparation of adjusting entries and the financial statements. Once the necessary adjustments are made on the work sheet, they must be recorded in the journal and posted to the ledger accounts before the financial statements can be prepared.
Learning Objectives
- Understand the function and preparation of adjusting entries within the accounting cycle.
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