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Can any accounting step after a worksheet be skipped?

The worksheet often facilitates the end-of-period (monthly, quarterly, or annually) accounting and reporting process. The use of a worksheet helps a company prepare the financial statements on a more timely basis. The main reason is that the company does not have to wait until it journalizes and posts the adjusting and closing entries. Timing is key in the end of period reporting process.

So, with the use of a worksheet, can a company skip a process or two? Can they skip it all together or just delay to another time?

Solution Preview

The worksheet does show the adjustments required and the extension amounts to the income statement and balance sheet. The net income is also calculated in the income statement section and balance sheet section as well. A company usually prepares a worksheet which is part of the accounting cycle in order to plan out the financial statements. If a company is preparing quarterly ...

Solution Summary

This solution abstract answers the question "Can any accounting process after a worksheet be skipped?" The information includes the purpose of a worksheet, end-of period financial statements, and journal entries, as well as an explanation of the reason why some steps may be skipped or delayed.