Question

“A worksheet is a permanent accounting record, and its use is required in the accounting cycle. “Do you agree? Explain.

Short answer

Disagree because it’s a worksheet and it assists in making adjusting entries and for closing the books at the end of the accounting period. The accounting statements are considered the permanent records, but this is not the case with the worksheet.

Step-by-step solution

Meaning of worksheet

Worksheet is a document used in the accounting department for inspecting and modelling the balances of accounts. It is beneficial for assuring that the accounting entries are obtained accurately.

Explanation for the statement

The statement is incorrect because a worksheet is not a permanent accounting record and its use is not needed in the accounting cycle. The worksheet is not a formal method for collecting and resolving information required for accounting statements. It is used alternatively as its aids in preparing financial statements.