Answer to Question #208196 in Economics for Cessy

Question

A work sheet is an optional working tool used by accountants to facilitate the preparation of financial statements. Consider the steps followed in preparing a work sheet. How does the use of a work sheet assist the accountant? Could financial statements be prepared without a work sheet? Evaluate how the process would differ. Consider factors such as timeliness, accuracy, and efficiency in your evaluation.

Answer 1

The so-called worksheet is an auxiliary tool in the preparation of reports and is not included in the list of documents required for presentation to external users in accordance with the CAAP. Companies have the right to use or not use it. According to the CAAP, formal correction records should be entered not only in the worksheet, but also in the relevant journals and invoices. However, when audited, the data on the worksheet serves as additional evidence of the correctness of the accounting in the company.

The worksheet is a blank chart consisting of several columns, including debit and credit columns for the unadjusted trial balance of the adjustment journal entries, the adjusted trial balance, as well as the final reports prepared on their basis: the profit and loss statement, the statement of retained earnings and the balance sheet. report.