Ask Question
4 January, 16:54

If a business closes its accounts only at year-end

a. Monthly and quarterly financial statements cannot be prepared.

b. Adjusting entries are made only at year-end.

c. Financial statements are prepared only at year-end.

d. Revenue and expense accounts reflect year-to-date amounts throughout the year.

+1
Answers (1)
  1. 4 January, 17:22
    0
    The correct answer is letter "D": Revenue and expense accounts reflect year-to-date amounts throughout the year.

    Explanation:

    Most firms close their accounts by the end of the year because of accounting reporting purposes. It does not imply throughout the year the firm will not be able to make reports of their performance. They actually can but closing the account relevant for the report requested. By closing the accounts only by the end of the year, the revenue and expense accounts will show annual calculations in the upcoming period books.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “If a business closes its accounts only at year-end a. Monthly and quarterly financial statements cannot be prepared. b. Adjusting entries ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers