
Concept explainers
Explain the reasons behind the preparation of an end-of-period spreadsheet by some accountants.

Explanation of Solution
Spreadsheet: A spreadsheet is a worksheet. It is used while preparing a financial statement. It is a type of form having multiple columns and it is used in the adjustment process. The use of a worksheet is optional for any organization. A worksheet can neither be considered as a journal nor a part of the general ledger.
First, a worksheet records the account balances transferred from the adjusted
Accountant generally uses spreadsheet to understand the impact of adjustments on the financial statements. Spreadsheet illustrates the flow of accounting information from the unadjusted trial balance into the adjusted trial balance and into the financial statements. According to the above explained reasons, some accountant prepares spreadsheet at the end-of-the period.
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Chapter 4 Solutions
FINAN.ACCOUNTING-W/DGT ACCESS (LOOSE)
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- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College