Journalizing and Posting Closing Entries Is a Required Step in the Accounting

question 212

Essay

Journalizing and posting closing entries is a required step in the accounting cycle. Discuss why it is necessary to close the books at the end of an accounting period. If closing entries were not made how would the preparation of financial statements be affected?

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Definitions:

Installation

The process of setting up software, a device, or system so it is ready for use by copying and configuring the necessary files and settings.

Activation

The process of enabling the full functionality of software or a service, often involving entering a license key or connecting to an activation server.

Registration

The process of enrolling or signing up for services, events, websites, or software, often requiring user information and agreement to terms.

Upgrading

Upgrading involves updating or enhancing a system or software version to add features or improve performance.