Preparing the work sheet and closing entries
A)saves money.
B)prevents mistakes.
C)provides a mechanism for applying the periodicity concept.
D)All of these choices.

Question

Quizplus · Accepted Answer

Preparing the work sheet and closing entries saves money by allowing the accountant to catch and correct errors before the financial statements are prepared, which can prevent mistakes from being carried forward into future periods. Additionally, it provides a mechanism for applying the periodicity concept by allowing revenue and expenses to be properly allocated to the correct time periods.

Preparing the Work Sheet and Closing Entries