Explain the purpose of a work sheet
A work sheet is not a financial statement, but is a useful device for organizing the information needed to prepare the financial statements. It eliminates the immediate need to record and post adjusting entries in the journal and ledger.
You might also like to view...
In a statement of cash flows, which of the following events would be classified as a financing activity?
A. purchase of a trading security B. payment of interest on a loan C. payment of cash dividends to shareholders D. All of these answer choices are correct.
Trade publications are useful sources of secondary information
Indicate whether the statement is true or false
The ____________ board has a proactive role within the decision-making process.
a. Passive b. Engaged c. Reactive d. Operating
Which of the following statements regarding service companies and activity-based costing (ABC) is true?
A) Service companies are not permitted to use ABC costing. B) Service companies find it easier to use ABC costing than manufacturing companies. C) Fewer repetitive activities make ABC costing more difficult to implement in service companies. D) Service companies have proportionately less facility-level costs than manufacturing companies.