Checking to Ensure That Skip Patterns Were Followed Occurs During

question 3

True/False

Checking to ensure that skip patterns were followed occurs during the data editing stage.

---

Definitions:

Periodic Inventory System

An inventory accounting method where inventory levels and cost of goods sold are calculated at set intervals, such as monthly or yearly.

Closing Entries

The journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent ones, preparing the books for the next period.

Retained Earnings

Profits that a company keeps to use within the business after dividends have been paid out to shareholders.

Fiscal Year

A one-year period used for financial reporting and budgeting, which may or may not align with the calendar year.