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Accounting post | Homework Help Websites

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In your post, comment on the following:

  1. In regard to the closing process, why are closing entries necessary and what impact would it have on the following accounting period if the closing entries were not recorded and posted?
  2. Why is it necessary to prepare financial statements even though all the business transactions have been recorded in the journal, posted in accounts and stored in its accounting system?  Are financial statement more useful than the journal and ledger? Explain.
  3. What is the difference between an income statement and balance sheet?
  4. Briefly explain the reason it helpful to understand the interconnectivity and relationship between each individual financial statements?

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